Turkey among six new countries awarded right to extract oil in Iraq

"We chose 35 companies of international standard, according to their finances, environment and experience, and we granted them permission to extract oil," the AFP quoted Asim Jihad, spokesman for Iraq’s oil ministry as saying. Six other state-owned oil firms from Turkey, Vietnam, Pakistan, Thailand, Angola and Algeria will also be awarded extraction deals, Jihad added.

 

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 Saddam Hussein chased them out, a first step to access to the earth's third largest proven reserve.

 

"They will have the first right to develop the fields," said Jihad, adding that competitive bidding would come at a later date once the nations long-delayed hydrocarbon law is passed by parliament. Â

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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 the Kirkuk field (Shell), Rumaila (BP), Al-Zubair (ExxonMobil), West Qurna Phase I (Chevron and Total), the Missan province development (Shell and BHP Billiton) and the Subba and Luhais fields (Anadarko, Vitol and the UAEs Dome), according to a previous report.

 

Iraq wants to ramp up production by 500,000 barrels per day from the current average production of 2.5 million barrels per day (bpd), a level about equal to before the United States-led invasion in March 2003.

 

Monthly exports of 2.11 million bpd currently form the bulk of the war-torn nation’s revenues, and the oil ministry is keen to raise capacity over the next five years to 4.5 million barrels per day.