After months of criss-crossing Europe talking to investors, Iraq’s oil minister has decided to allow foreign companies to take a controlling interest in projects to boost oil production, reversing an earlier rule limiting them to minority status.
The move had been sought by international oil companies seeking a role in developing Iraq’s vast resources, after they had expressed concerns about the severity of the terms on offer. It follows a pivotal meeting last month in Istanbul and at this month’s OPEC conference in Vienna, where Iraqi officials met the heads of several companies.
“In Istanbul there were many questions and changes suggested to the model contract. We have found most of the suggestions and changes reasonable,” Hussein al Shahristani, the Iraqi oil minister, said after the OPEC conference in Vienna. “We fully understand that the companies do not feel comfortable with making such large investments if they don’t have control over the operating group to make sure they produce according to the time schedule.”
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