Forex

Iraq opened its giant oilfields to foreign firms on Monday, putting British and US companies in pole position five years after US-led troops invaded the country to oust Saddam Hussein. The move to invite bids for the development of Iraq's largest producing fields should mark the return of the oil majors whose cash and expertise Iraq needs to restore its oil infrastructure that has been hard hit by sanctions and war.

But any awards to US and British firms could anger opponents of the invasion, who have said the 2003 war was designed to give Western oil companies control over Iraqi oil reserves. US and British officials have denied the charges. By allowing international firms to help raise output at its key producing oil fields, the Iraqi government is breaking with the policy of major oil-producing neighbours such as Saudi Arabia, Kuwait and the United Arab Emirates where national firms keep tight control of foreign investment in their oil sectors.

"The six oilfields that have been announced today are the backbone of Iraq's oil production," Oil Minister Hussain al-Shahristani told a news conference. "With its massive proven reserves, Iraq should not stay at its current level of production. Iraq should be the second or third largest oil-producing country." Shahristani listed the fields as Rumaila, Kirkuk, Zubair, West Qurna Phase 1, Bai Hassan and Maysan -- which comprises three separate fields: Bazargan, Abu Gharab and Fakka.