| 2008: Iraq to announce oil fields available for bidding |
|
June 25, 2008 The Iraqi Ministry of Oil will soon announce the names of oil fields, which will be available for bidding by foreign companies, according to the country's oil minister. "The Iraqi cabinet approved the establishment of an Iraqi oil company in the southern province of Missan, which will be assigned to develop oil fields and push up production levels in the province," Minister Hussein al-Shahrestani on Tuesday said in statements to the press from the Iraqi cabinet's headquarters. "Negotiations are currently underway between the ministry and a number of companies," the minister noted, adding that the first call for biddings will be announced this Monday, June 30. The minister explained that transparency and openness will be instrumental in the process, which he said will help Iraq benefit from the experience of oil multinationals and increase its production. Iraq currently produces nearly two million barrels of oil a day, the highest production since the U.S.-led invasion of the country in March 2003. Most of the production comes from fields in the southern province of Basra and the northern tips of the country. The minister further noted that the ministry has not signed any contracts with foreign companies thus far, adding that all contracts "will have to be submitted to the cabinet for prior approval." "Other considerations will be taken into account while signing the contracts," the minister added, in reference to what he described as the development of the country's infrastructure and the recruitment and training of Iraqi workers. During the press conference, al-Shahrestani said that the cabinet had agreed to set up a new Iraqi oil company with the name 'Missan Oil Company' with the aim of developing local oil fields in the province. Missan, one of Iraq's oil-rich cities, suffers from lack of sophisticated oil field facilities. Amara, the capital city of Missan province, lies 390 km south of the Iraqi capital Baghdad. |