Iraq oilfields ready for revival, await foreigners

BASRA, Iraq (Reuters) – Next to a pipeline snaking across a desert in Iraq’s south, villas built to house an expected influx of foreign oil workers stand empty.

Nearby, a faded plaque in Russian and Arabic commemorates the opening of a pumping station in 1972, a reminder of the foreign ties that helped Iraq develop its oil industry.

As U.S. President Barack Obama confronts the legacy of a war his predecessor launched almost six years ago, Iraq has once again begun to open its vast oil reserves to foreign companies.

The country has launched a bidding round for some of its largest oil and gas fields, which it hopes will attract multibillion dollar investments. There is still some confusion over the deals, scheduled to be awarded by June.

But a lack of security, rigid bureaucracy and the absence of a legal framework is still deterring the investment Iraq needs to update its decaying oil infrastructure.

Reuters