October 12, 2008

Iraq unlikely to sign major oil contracts until summer

Iraq Directory reported that Iraqi government is unlikely to sign technical support contracts with major oil companies to work in some main fields until summer, a few months late from the date that Iraqi government had originally targeted.

Mr Hussein Al Shahrastani Iraqi oil minister has expressed his hope last month to sign such contracts in March 2008. However, executives of oil companies said that negotiators did not discuss details until now or the scope of the work, the financial amounts and relationship with the work of long-term development of fields which major oil companies aspire to work on.

The contracts will give the companies a larger role than ever before in managing the maintenance and development projects of the fields. Those companies have provided field studies, technical and training support for those fields for years in an attempt to gain the satisfaction of Baghdad.

As per report, the agreements aim to increase Iraqi oil production to 500,000 barrels a day within a year to add more than 20% to the current production of 2.27 million barrels per day.