The ministry had set Jan. 31 for the last day to submit a prequalification application.

"Taking into consideration the end of year seasonal holidays and the time needed to provide some of the documents," the ministry said in a statement, "the deadline is hereby extended up to Monday Feb. 18th 2008."

Applicants, if approved, will be allowed to bid on upcoming service contracts on Iraq's fields. The largest fields, however, are being negotiated directly between the ministry and oil majors. The ministry hasn't named the firms, but multiple sources say they are BP, Shell, ExxonMobil, Chevron and Total.

Iraq's national government is intent on developing the oil sector despite ongoing hang-ups with the Kurdistan Regional Government and a controversial draft oil law.

The country holds the world's third-largest proven reserves, but much of what has been found has yet to be developed and the country is largely underexplored. It produces only 2.3 million barrels per day of oil.

A proposed oil law that would govern the sector has been stalled for more than a year. The central government and the KRG can't agree on who has final say on developing the sector and signing deals. The KRG, interpreting the new constitution as giving oil policy powers to producing regions and governorates, has passed its own oil law and signed dozens of contracts to explore and develop its region in the north.

Baghdad objects, calling them illegal and said it will blacklist any firm that signs with the KRG from winning a deal in the rest of Iraq. Absent an oil law, the central government is now relying on a Saddam-era policy leaving it to the Oil Ministry to sign deals.

The ministry said the upcoming round of contracts will include basic oil extraction to field development and providing equipment and training to Iraq's oil workers.

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Ben Lando, UPI Energy Editor

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(e-mail: blando@upi.com)