Iraq's state-owned energy firm South Oil has launched a recruitment drive that will provide 1,670 new jobs for Iraqi workers.

According to Reuters, demand for positions was high, with overnight queues developing at one application centre in Basra.

Under the terms of the exploration and production contract awarded to BP and China National Petroleum Corp (CNPC), the two companies must hire Iraqi workers wherever possible and set aside a $5 million (£3 million) pool to pay for training and development initiatives.

South Oil Co is responsible for the majority of Iraq's oil exports, with the firm looking to boost revenues from international sales over the coming years as BP and CNPC overhaul fields left dilapidated after years of underinvestment.

The country's oil ministry has also pledged to commence with the next round of bidding for exploration licences in December, with 44 companies expected to compete.

Many international firms refrained from bidding in the first licensing round, but many have since revised investment strategies and are understood to be keen to secure a foothold in the country.

GetEnergy event for Iraq October 2009