Oil companies to get details Monday on bidding for rights to Iraqi oil fields

By Sinan Salaheddin, The Associated Press

BAGHDAD - Iraq's oil minister is meeting with representatives of international oil companies in London on Monday to discuss bidding on the rights to develop his country's petroleum fields.

Last April, Iraq chose 35 oil companies out of 120 that applied to participate in the bidding to develop six major oil fields and two natural gas fields.

Topping the list of companies are the world's oil giants: Royal Dutch Shell PLC, BP PLC, ExxonMobil Corp., Chevron Corp. and Total.

Six state-run oil companies were later added to the list and a British company was dropped since it did not submit the required documents.

Iraq sits on more than 115 billion barrels of oil, but decades of wars, UN sanctions and sabotage have battered its oil industry.

As security improves, Iraq is trying to bring in foreign companies to help increase crude output from the current 2.5 million barrels a day to 4.5 million by the end of 2013.

Ministry spokesman Assem Jihad says the purpose of the London meeting with Oil Minister Hussain al-Shahristani is to present the oil companies with details on the contracts and fields being offered.

"In light of these information, the companies will be in a better position to submit their bids which are planned to be approved by next summer," Jihad told The Associated Press.

The ministry will give the companies a six-month timetable from the receipt of data and other details to submit bids for a 20-year contract, another Oil Ministry official said.

The official, who spoke only on condition of anonymity as he was not authorized to publicize information before Monday's meeting, said the ministry plans to announce winners in June 2009.