Iraqis sceptical about promise of oil

Published: 8:20AM Monday December 14, 2009 Source: Reuters

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Iraq's leaders expect a flood of petrodollars from oil deals to lift the country out of poverty after years of conflict and corruption but few Iraqis are convinced.
   
The Oil Ministry this weekend ended a second auction of contracts to develop Iraq's prized oilfields.

Both rounds yielded 10 deals that officials predict will boost capacity to 12 million barrels a day, rivalling top exporter Saudi Arabia.
   
"Iraqis will live like Saudis in the year 3000," said Asim al-Jibouri, a baker in Baghdad.

"Seven years have passed (since the invasion), and no infrastructure has been built."
   
The average Iraqi's annual income was $4,416 in 2008, while the average Saudi made $28,291, US government data shows.
   
Iraqis face daily struggles with power outages.

Healthcare is outdated, sewage courses into waterways, and state services are overwhelmed.

Corruption is rife in Iraq, which Transparency International says is among the world's most corrupt nations.
   
The oil deals precede a March 7 election, a major test for Iraq's democracy before the US military pulls out in 2011.
   
The government, which relies on oil exports for 90% of its income, says the deals will create hundreds of thousands of jobs and bring in $276 billion of extra revenue each year.
   
"Of course success (from the oil auctions) might serve us in the election," said Sami al-Askari, a lawmaker seen as close to Prime Minister Nuri al-Maliki, who will seek re-election.
   
"Iraq will no longer be considered a poor country."
  
But ongoing violence, even as US troops retreat to the sidelines and the government promises a more prosperous future, creates cynicism and anger among Iraqis.
   
As many as 112 people were killed on December 8 when car bombs ripped through the capital in attacks claimed by al Qaeda.
   
The streets of Baghdad are pockmarked with shattered buildings and concrete blast walls after years of strife.
   
"Even if they export billions of barrels of oil a day, Iraqis' living conditions won't improve," said Abdul Muniem Abdo, a 49-year-old taxi driver.

"Iraq's oil in the past went to wars, now it goes to blast walls and barbed wire."
   
Among the energy majors that have won contracts are BP, Royal Dutch Shell  and Exxon Mobil .
   
"There is great dissatisfaction among the people about Iraqi oil in the hands of foreign companies," said Dhafer al-Ani of parliament's Sunni opposition Accordance Front.
   
Still, some Iraqis have decided to reserve judgment.
   
"We hope that it will be a good beginning, that our living conditions will be like those in Gulf countries," said Ahmed Jawad, 22.

"The government has promised us many things, but none have been achieved. We will be patient, like we've always been."

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