Iraq, despite huge reserves, has seen a loss of interest by Western energy majors.

Industry sources said Western contractors have reduced their activity in Iraq while focusing on other areas, including the autonomous Kurdistan in the north.

The sources cited rampant corruption as well the insurgency war, factors that the foreign companies assessed would make any project unprofitable.

“Virtually every Western energy contractor in Iraq regrets its investment and is trying to pull out,” an industry source said.

The loss of Western interest in Iraq’s sector was seen in May 2012. The Iraqi Oil Ministry failed to attract such Western companies as British Petroleum, ExxonMobil and Royal Dutch Shell to bid for licenses.

Instead, Exxon chose to invest in Kurdistan, which signed 50 energy deals and poses
competition to Baghdad.