Iraq's instability highlighted on sovereignty day
Updated on 30 June 2009
As US forces begin to withdraw from the urban areas in Iraq, the government conducts an eleborate oil field auction which is not entirely successful.
The televised auction to sell off eight major oil and gas fields to the highest bidder turned into something of a fiasco, with most energy companies unwilling to accept the fees the oil ministry was willing to pay.
The live coverage was pulled off television but one deal was struck between BP and the Chinese state company CMPC over the Rumalia oil field.
In an interview with Channel 4 News, Dr Zuhair al-Naher, spokesman for Iraq's Prime Minister Nuri al-Maliki, said: "Iraq needs to be careful and needs to tread carefully in terms of developing its oil fields.
"Despite the delay with the oil law, the oil industry has been moving forward using old criteria and laws and I think it is only a matter of time before other deals are struck.
"Iraq has control of its oil fields and development of oil as the Iraqi people want to.
"Everything is transparent, there have been no back-room deals, everything is up front.
"We can say Iraq is now open for business and investment. Foreign companies can come and benefit from investment in Iraq and Iraq can benefit from technonlgy and the investment of those companies."
However, the day of sovereignty was also affected by a bomb blast in Kirkuk, which killed at least 25 people.
Dr al-Naher added: "Look at how far we have come, 18 months ago there were no-go areas in Iraq. Now there is no area where the security forces cannot control.
"Attacks have been down between 85 and 90 per cent. It is only as a result of the security operations in most of the provinces that we have managed to reach this stage where the Iraqi forces can now reach and take over security.
"It shows the agreement between the Americans and Iraq is working and both sides are abiding by that agreement.
"It also takes away any legitimacy of so-called insurgent groups to carry out attacks in Iraq."
