Western energy firms bailing from Iraq in favor of Kurdistan

[Aslan]

BAGHDAD — Iraq, despite huge reserves, has seen a loss of interest
by Western energy majors.

Foreign firms, fed up with corruption in Baghdad, are being lured by Kurdistan’s more liberal terms for oil contracts.

Industry sources said Western contractors have reduced their activity in
Iraq while focusing on other areas, including the autonomous Kurdistan in
the north.

The sources cited rampant corruption as well the insurgency war, factors
that the foreign companies assessed would make any project unprofitable.

“Virtually every Western energy contractor in Iraq regrets its
investment and is trying to pull out,” an industry source said.

The loss of Western interest in Iraq’s sector was seen in May 2012. The
Iraqi Oil Ministry failed to attract such Western companies as British

Petroleum, ExxonMobil and Royal Dutch Shell to bid for licenses.
Instead, Exxon chose to invest in Kurdistan, which signed 50 energy deals and poses
competition to Baghdad.