Oil giants are poised to move into Basra

Western oil giants are poised to enter southern Iraq to tap the country’s vast reserves, despite the ongoing threat of violence, according to Gordon Brown’s business emissary to the country.

Michael Wareing, who heads the new Basra Development Commission, acknowledged that there would be concerns among Iraqis about multinationals exploiting natural resources.


Basra, where 4,000 British troops are based, has been described as ‘the lung’ of Iraq by Prime Minister Nouri al-Maliki. The region accounts for 90 per cent of government revenue and 70 per cent of Iraq’s proven oil reserves. It has access to the Gulf and is potentially one of the richest areas in the Middle East, but continues to be plagued by rival militias.

Wareing, international chief executive of KPMG, was asked by Brown to help kick-start business in the Basra region in the hope that prosperity will bring stability. On his first visit last week, he met officials and business leaders but a sandstorm forced him to cancel a flight to Baghdad to meet Maliki and General David Petraeus, the US’s commanding officer in Iraq.

Guardian