Iraq Finally Will Sign Oil Contracts With Foreign Companies

The Iraqi government approved signing contracts with international oil companies to develop oil fields in northern and southern parts of the country.

"The ministry received signal from the cabinet to negotiate with international oil companies to develop the oil industry and not wait for the controversial oil law which the parliament is facing difficulties to pass it," the Oil Ministry representative said.

Iraq is pushing to increase its average crude production by about 500,000 barrels a day from the current average of 2.3 million barrels per day, the source said on condition of anonymity.

He said that his ministry will ask the companies to offer their management experience, oil field studies and consultation on technology, while the Iraqi side will provide labor.

Iraqi parliament has still not approved a new oil law to regulate the international oil companies' work and share Iraq's rich oil resources among the country's Shiites, Sunni Arabs and Kurds.