Iraq to award oil contracts to foreign firms: ministry

[debrobb]

Iraq will award contracts to 41 foreign oil firms in a bid to ramp up production that gives multinationals a potentially lucrative foothold in the nation's huge oil fields, an official said on Sunday.
"We chose 35 companies of international standard, according to their finances, environment and experience, and we granted them permission to extract oil," Asim Jihad, spokesman for Iraq's oil ministry, told AFP.
Six other state-owned oil firms from Vietnam, Pakistan, Thailand, Angola and will also be awarded extraction deals, said Jihad.
The agreements, to be signed on June 30, are expected to be short term arrangements although the ministry has yet to provide a timeframe.
The deal paves the way for global energy giants to return to Iraq 36 years after late dictator Saddam Hussein chased them out, a first step to access to the earth's third largest proven reserves.
"They will have the first right to develop the fields," said Jihad, adding that competitive bidding would come at a later date once the nation's long-delayed hydrocarbon law is passed by the parliament.
Companies will be focused on fields in the north and the south where wells and perforations already exist, thus requiring minimal additional investment.
These agreements will be announced alongside Technical Support Agreements (TSAs) with five foreign oil majors.
They cover Kirkuk field (Shell), Rumaila (BP), Al-Zubair (ExxonMobil), West Qurna Phase I (Chevron and Total), Missan province development (Shell and BHP Billiton) and the Subba and Luhais fields (Anadarko, Vitol and the UAE's Dome), according to a previous report.
The TSAs are a bridging contract designed to fast-track foreign oil involvement in Iraq.

http://www.turkishpress.com/news.asp?id=237818

[R we THERE yet??]

Nice find and also nice to see IIF back up again....Here's to what could be a great week!!

[debrobb]

Here's to what could be a great week!!

I sure hope so!!!

[Hermes]

Here's another version of the article you posted, debrob, I especially like the red part:

Iraq adds six more oil firms to those qualified to bid for future deals

The Associated Press
Sunday, June 22, 2008

BAGHDAD: The Iraqi Oil Ministry added six more oil companies to a list of 35 permitted to bid for future oil and gas deals, the ministry spokesman said Sunday.

Assem Jihad didn't provide the company names but said they are state-owned firms from Turkey, Vietnam, Pakistan, Thailand, Angola and Algeria.

Last April, Iraq accepted 35 international oil companies out of more than 70 firms that applied to the ministry for permission to make bids.

Jihad added that the ministry is planning to issue another invitation for companies to submit their qualification documentation to compete for the development of smaller oil and gas fields.

He didn't say when the new invitation would be issued but said they would go out as soon as the ministry finished awarding the first round of tenders.

Baghdad is about to sign Technical Support Agreements, TSAs, with international oil firms to boost its current 2.5 million barrels per day output by 600,000 barrels.

The New York Times reported Thursday that Shell, BP and Exxon Mobil and Total were the four major companies close to signing deals, along with Chevron and some smaller companies.

Iraq sits on an estimated 115 billion barrels and it also has an estimated 112 trillion cubic feet of natural gas reserves, according to the ministry — making it one of the most oil rich countries in the world.

http://www.iht.com/articles/ap/2008/...-Companies.php

[thegujju]

Thanks for posting guys.

On a side note, given its current connotations I bet this Ministry spokesman is cursing his luck that his surname is Jihad lol.

[Hermes]

Thanks for posting guys.

On a side note, given its current connotations I bet this Ministry spokesman is cursing his luck that his surname is Jihad lol.

That struck me as well!