Iraqi oil workers protesting foreign contracts

Ben Lando reports that Iraqi oil workers are protesting the recent contracts with foreign oil companies and the possible others that could be signed in the near future.

The workers basically blame the Iraqi government for neglecting to invest in the fields to repair and renovate the infrastructure and technology needed to exploit Iraq's oil and gas resources. That's why, due to this lack of investment, the government now needs to go get funds and help from international companies, whereas if the proper investments had been made, Iraq could manage their energy sector more independently.

Unions "say the government should have directed more money much quicker to allow the state company to fix the infrastructure – damaged by wars, sanctions and misuse since the 1980s – and increase production.

“We blame the Ministry of Oil for the current situation,” Awad said. He added that delays in state investment has led to the government, quickly needing more cash for reconstruction, to invite foreign oil firms without better standing up the state companies."

The unions have said there is a role for foreign firms in Iraq oil production. But they want a balance between the need Iraq has for modern techniques, training and equipment and the desire to keep Iraqis in control of Iraq’s oil.

Meanwhile, Iraq’s Kurdistan Regional Government (KRG) passed a regional oil law and signed two dozen oil deals, which the central government has called illegal and added to the roadblocks for the future of Iraq’s oil sector.