Miliband declares Iraq "open for business"

27/02/2009

Foreign secretary David Miliband has declared Iraq "open for business" after a UK oil and gas firm was awarded a new contract to begin drilling in the war-torn country.

Speaking at a press conference during a surprise visit to the country, he said that Britain and Iraq could now look to develop a closer relationship along commercial, cultural and educational lines.

His comments followed the announcement that Mesopotamia Petroleum has been awarded a $400 million (£277 million) contract to purchase new rigs and begin new exploration activity in the country.

"This is an important signal of the long-term commitment the UK has to Iraq in terms of trade, commerce and economic co-operation. It is also an important message to British business that Iraq is open for business," said Mr Miliband.

Earlier this week, Iraq also signed a comprehensive oil-for-development agreement with South Korea that will see the south-east Asian country build new storage facilities and refineries in return for drilling rights in the south of the country.

Iraq may then be able to generate additional revenue through the export of distillates such as heating oil, DERV and farm diesel.