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The heads of the world's biggest oil companies were on the way to Baghdad today to bid for lucrative Iraqi oil contracts.
More than 30 firms, including eight of the world's top 10 producers such as BP, Royal Dutch Shell and Exxon Mobil, will take part in the first auction of production contracts in Iraq since the 2003 invasion.
The companies are vying for the right to develop six oilfields and two gas deposits in Iraq, the holder of the world's third-largest oil reserves.
However, the firms will find themselves at the centre of a political row over the televised bidding process and contract awards as controversy over foreign oil investment rages.
Nourreddine al-Hayali, an Iraqi MP and member of the parliamentary oil and gas committee, said: "The current effective laws do not grant the oil minister the right to award contracts unless he gets the approval of parliament first."
The contracts cover 43 billion barrels of crude. At 115 billion barrels, Iraq's reserves are third only to Saudi Arabia's 264 billion and Iran's 138 billion.
