Petronas’ decision to notify the government of its plan to exit Iraq’s Gharaf oil field puts the exodus of foreign oil firms firmly back in the spotlight. This comes at the same time as Iraq has opened two licensing rounds with a total of 24 exploration blocks on offer (MEES, 23 June).
Not only is Iraq dismayed by the exit of technically-proficient firms, but it is also concerned that most of the firms showing interest in entering its upstream sector are Chinese state entities. Baghdad is wary of Chinese state firms becoming dominant in Iraq’s economy, and in its key oil and gas sector in particular. Attempting to reverse this, Baghdad has attracted TotalEnergies through innovative packaging of energy projects (MEES, 7 April) and is even offering improved terms through new exploration contract models (MEES, 10 March). (CONTINUED - 315 WORDS)
