Baghdad: Iraq's long-awaited licensing round to develop some of its massive oil reserves stumbled yesterday as oil and gas companies dug in their heals, demanding more money for their efforts than the government was willing to pay.
International oil companies were submitting bids for six oil and two gas fields more than 30 years after Saddam Hussain nationalised the oil sector and expelled foreign firms. The televised process coincided with Iraq assuming formal control over its cities - a step toward ending the US combat role in the country.
But by midday, only one field had been awarded and several others drew limited to no interest.
The government was hoping that the high-profile licensing round - tele-vised to prove its transparency - would result in companies flooding in, bringing their expertise as the country looks to boost output of a resource whose sales bring in 90 per cent of the government's revenues.
Some analysts have said companies may be unwilling to commit to major ventures in Iraq, opting to wait and see how the security situation develops after the US pullout from urban areas.
Iraq Prime Minister Nouri Al Maliki said at the start of the day's ceremony that the government would "offer security protection, offer all guarantees for their investments and offer all the facilities needed to ensure the success of this process." Disputes over how much the companies would get for producing over a minimum output target cast a pall on a process heralded as offering Iraq the key to rebuilding an economy devastated by years of sanctions and the 2003 US-led invasion.
International oil companies were submitting bids for six oil and two gas fields more than 30 years after Saddam Hussain nationalised the oil sector and expelled foreign firms. The televised process coincided with Iraq assuming formal control over its cities - a step toward ending the US combat role in the country.
But by midday, only one field had been awarded and several others drew limited to no interest.
The government was hoping that the high-profile licensing round - tele-vised to prove its transparency - would result in companies flooding in, bringing their expertise as the country looks to boost output of a resource whose sales bring in 90 per cent of the government's revenues.
Some analysts have said companies may be unwilling to commit to major ventures in Iraq, opting to wait and see how the security situation develops after the US pullout from urban areas.
Iraq Prime Minister Nouri Al Maliki said at the start of the day's ceremony that the government would "offer security protection, offer all guarantees for their investments and offer all the facilities needed to ensure the success of this process." Disputes over how much the companies would get for producing over a minimum output target cast a pall on a process heralded as offering Iraq the key to rebuilding an economy devastated by years of sanctions and the 2003 US-led invasion.