Iraq

Iraq resumes oil exploration

Article published on the 2008-08-08 Latest update 2008-08-08 14:43 TU

A member of the Iraqi National Police stands guard in Buhriz
(Photo: Reuters)

Iraq's government says it is resuming exploration of its immense oil reserves after a break of nearly 20 years because of crippling UN sanctions. The country's oil ministry will deploy three exploration teams trained abroad in the latest techniques. Baghdad hopes the teams will uncover deposits that will enable it to double its proven oil reserves, currently standing at 115 billion barrels of crude.

The United Nations imposed a strict oil embargo on Iraq in 1990, forcing it to cease exploration and cut back drastically on exports.

Iraq, a member of Opec, now wants to bring up oil output by 500,000 barrels a day, which would make output at pre-US invasion levels.

The US issued a report on Tuesday, saying that  Iraq was amassing a huge budget surplus and neglecting reconstruction activities, forcing the US to provide the funds for reconstruction.

At the end of June, the Iraqi Oil Ministry opened six oilfields and two gasfields to international bidding by 41 multinational companies.

"The fear is among the Iraqi people and the union that this is a back door entry for the multinational oil companies," said Sabah Jawad, a British-based supporter of Iraqi oil trade unions;

"Eventually they will seek production-sharing agreements which is opposed in Iraq by our people," he added.