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Monday, September 22, 2014

Monday, June 23, 2008
Business

Iraq to award oil contracts to foreign firms

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 Turkey, Vietnam, Pakistan, Thailand, Angola and Algeria 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.

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