Posters at a gas station at a 2008 protest against U.K. oil companies involvement in Iraq. Feb 20, 2010
Iraq’s Oil For Iraq
One-part election hackery and one-part good politics, the Iraqi prime minister has announced that the country will not sell the rights to any more of its oil fields to foreign companies, a move that signals an intent by Iraq to develop its own national oil industry.
The announcement comes a month before a national election, though despite the obvious influence of politics on the decision it does suggest that Iraq may be changing its stance towards privatization and the selling off of the country’s national resources.
Iraq has no further plans to use foreign firms to develop its oilfields beyond ones auctioned off last year, the country’s prime minister said on Saturday, ahead of a national election next month.
Analysts say that foreign companies may have accepted the tough terms in oilfield development contracts awarded in two rounds last year partly to secure an initial foothold in Iraq, with a view to possible access to other untapped reserves later.
Iraq has the world’s third-largest crude reserves and is the world’s 11th-biggest oil producer.
