Oil Giants Are Poised to Move Into Basra
February 25th, 2008Democracy.
Via: Guardian:
Western oil giants are poised to enter southern Iraq to tap the country’s vast reserves, despite the ongoing threat of violence, according to Gordon Brown’s business emissary to the country.
Michael Wareing, who heads the new Basra Development Commission, acknowledged that there would be concerns among Iraqis about multinationals exploiting natural resources.
Basra, where 4,000 British troops are based, has been described as ‘the lung’ of Iraq by Prime Minister Nouri al-Maliki. The region accounts for 90 per cent of government revenue and 70 per cent of Iraq’s proven oil reserves. It has access to the Gulf and is potentially one of the richest areas in the Middle East, but continues to be plagued by rival militias.
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In the first interview since his appointment, Wareing, 53, told The Observer that security had improved significantly in recent months and was no longer an issue for investors. ‘If you look at many other economies in the world, particularly the oil-rich economies, many of these places are quite challenging countries in which to do business,’ he said. ‘Frankly, if you can successfully operate in the Niger Delta, that is a very different benchmark from imagining that Basra needs to be like London or Paris.’
