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has estimated that the country would have to invest billions of dol-
lars to upgrade this infrastructure to maintain the current level of
production. In 2009, the Iraqi Ministry of Oil granted licenses
allowing international oil companies to access some of the country’s
oil fields, paying a royalty to the government. Some of those funds
are being used to upgrade roads, pipelines, ports, and oil refining
facilities. The balance is used by the government for other impor-
tant infrastructure improvements, such as new schools, hospitals,
and highways.
In addition to its vast oil resources, Iraq has 110 trillion cubic feet
of proven natural gas reserves. Of that, 70 percent is “associated”
natural gas, which is produced at the same time that oil is extracted.
There are three main manufacturing areas in Iraq, the most
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An oil pumping station in southern Iraq. The country controls the world’s fifth-largest petroleum
reserves, and oil is an important part of Iraq’s economy.