Foreign oil firms in Iraq: Waiting game

The Western giants hold out for a better offer FOR some conspiracy theorists, the war in Iraq was always about gaining control of the world’s third-largest oil reserves for Western energy firms. True or not, things are not panning out that way. This week most big oil companies turned their backs on the first opening of Iraqi production to foreign investors since Saddam Hussein nationalised the industry 37 years ago. The oil ministry, which wants to lift crude output from 2.4m barrels a day (b/d) last year to 6m b/d by 2017, hoped a much-delayed licensing round for eight of the country’s biggest oil- and gasfields would bring international firms—with their capital and expertise—back to Iraq. But the televised auction proved embarrassing for Hussein al-Shahristani, Iraq’s oil minister. Just one contract was awarded, to a joint venture between BP and China’s CNPC, which beat a bid from Exxon Mobil and Petronas of Malaysia. That contract covers the Rumaila oilfield, ... (link)