Training Obligations in the Technical Service Oil Contract in Iraq: Challenges and Solutions
Many international oil companies are currently investing in the Iraqi oil industry under the Technical Services Contracts (TSC) for 20-25 years. These oil contracts require contractors to allocate, as a minimum, an annual amount of USD 5 million to the Training, Technology, and Scholarship Fund. This is important in building capacity and expertise for Iraqi workers. However, there is evidence that the full amounts have not been spent nor has it led to the upskilling and recruitment of greater numbers of Iraqi workers. This research discusses the legal and governance weakness that leads to insufficient implementation of training requirements. It argues that Training in the oil industry of Iraq should be subject to sound management to achieve general sustainable development. On this basis, the study provides an advanced framework and recommendations for training programs to maximise economic and social benefits from the oil industry in Iraq. To effectively address training challenges in the oil industry, the large amount of the Training Fund could be partially reallocated to support the development of other sectors, contribute to general education development and be subject to a sound monitoring policy. In this way, oil investment will increase the general development in the country rather than developing the oil industry only.