Iraq
has no further plans to use foreign companies
to develop its oilfields beyond ones auctioned off last year, Prime Minister
Nuri al-Maliki has said, ahead of a national election next month.
Analysts say that foreign
companies may have accepted the tough terms in oilfield development contracts
awarded in two rounds last year partly to secure an initial foothold in
Iraq
,
with a view to possible access to other untapped reserves later.
Iraq
has the world's third-largest crude reserves and is the world's 11th-biggest
oil producer.
Maliki said
Iraq
should start thinking about developing its national oil companies and warned of
"staying captive in the hands of foreign oil firms".
"I told the oil minister
during a cabinet meeting that we will never sign any more contracts with
foreign oil companies," Maliki told supporters at a rally in the southern
oil hub of
Basra
, weeks before a parliamentary election on 7 March, according to a
Reuters report.
"We will depend on our
national companies in developing our oilfields," Maliki said.
His nationalistic tone could
discomfort oil players such as BP and Shell, which are monitoring their likely
reception in a country wracked by years of war and with little recent
experience of working with foreign companies.
Baghdad
has struck deals with international oil companies that could boost its
output capacity to 12 million barrels per day within seven years from about 2.5
million bpd now.
Oil Minister Hussain
al-Shahristani said in December there were no plans for a third oil contract
auction.
Maliki's coalition is not expected
to repeat its triumphant performance in last year's local polls. Huge bombings
have since chipped away at his claims to have improved security, and opponents
have united to oust him.
Analysts expect the ten oil deals
awarded in auctions last year will likely survive the change in
Iraq
's
government after the parliamentary vote next month, seen as a crucial test for
Iraq
as it tries to move away from years of war and sanctions.
Foreign capital and expertise is
seen as essential if
Iraq
is to rebuild its battered economy and infrastructure.
The country's oil installations
and pipelines have suffered repeated bombings and sabotage, and many of its
most qualified workers fled the country in the violent and chaotic aftermath of
the 2003 US-led invasion.