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You are here:  Home / Energy Resources / Analysis: Iraq oil deals drawing near

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Analysis: Iraq oil deals drawing near

By BEN LANDO, UPI Energy Editor
Published: Feb. 1, 2008 at 5:12 PM
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WASHINGTON, Feb. 1 (UPI) -- Iraq's Oil Ministry, in talks with oil majors to boost production in crucial fields, may give long-term deals to firms that offer technical support.

This comes as Baghdad is preparing a first round, though somewhat cloudy in details, of bidding and negotiated contracts to improve its struggling oil sector.

Oil Minister Hussain al-Shahristani told Argus Media on the sidelines of the OPEC meeting in Vienna that all deals would be fully transparent. Work would be carried out by Iraqi workers, he said. There are no legal controls, though, and without it and the re-establishment of the Iraqi National Oil Co. the country's oil sector is moving away from being nationally controlled.

Officials from the world's largest oil companies have been meeting with Iraqi Oil Ministry officials in Amman, Jordan, to fix the terms of technical support contracts. Such contracts, which are shorter-term deals, will "help Iraq fast track the purchase of necessary equipment and train the Iraqi people to install them," Shahristani said.

He said those companies will be favored in a bidding round for longer-term contracts on the fields -- some of Iraq's largest producers -- set for later this year, Argus reports. Another bidding round is expected to take place next year.

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