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Iraq to auction oil, gas blocks once law passed

“Iraq is preparing 15 fields and blocks for first round of auction after approval of the oil and gas law ... tenders are under preparation,” Fayadh Hassan Nima, director general at Iraq’s oil ministry, told reporters.

Oil multinationals are waiting until a new hydrocarbon law, which sets the rules of investment in Iraq, to be passed by the parliament before pumping cash into Iraq.

International oil firms are eyeing its giant and largely underdeveloped oilfields.

Nima said he expected the law to be finalised within “two to three months”.

Iraqi Oil Minister Hussain al-Shahristani said earlier this month all parties had agreed to pass the law by the end of May.

Oil is the country’s main source of the hard currency needed to rebuild its economy, and the energy sector is struggling to recover from years of mismanagement and sanctions.

Baghdad wants to build at least four new refineries to help it solve chronic fuel shortages.

Nima said in New Delhi, it was hoping Indian firms would build two of those refineries.

Iraq has eight oil refineries, none of which were damaged during the invasion. Oil officials say that the plants are operating at only 50 percent-75 percent of capacity, forcing Baghdad to import most of its fuel.