Iraq initials final of seven latest oil contracts

Baghdad - The Iraqi Oil Ministry initialed Wednesday the final of seven oil contracts awarded earlier this month, edging closer to sealing deals the government hopes will double oil production in the country. The latest signing, which still requires the final stamp of approval from the cabinet, was with Angola's Sonangol to develop fields near the troubled city of Mosul, some 400 kilometers north of the capital, Baghdad.

The field at Qayarah would have a peak production rate of 120 thousand barrels per day (bpd), while the Nijm field would hit 110 thousand bdp at prime levels.

Oil Ministry spokesman Assem Jihad said the contract would be good for 20 years, but could be further extended.

On Tuesday, Russia's second largest oil producer Lukoil and Norwegian state-owned Statoil, together with Iraq's national oil company, signed one of the largest oil deals, for a field with estimated reserves of 12.9 billion barrels.

December's bidding, the second round of an auction begun in June, saw companies agree to contracts on seven fields across the country.

The Iraqi government, which relies heavily on oil exports for its revenue, hopes the ongoing foreign investment will more than double its current output of roughly 2.5 million bpd.

Over the coming years, optimistic outlooks within the government say the latest contracts awarded, combined with the first round of bidding, could boost production to levels as high as 12 million bpd.

Source: Earth Times.
Link: http://www.earthtimes.org/articles/show/301519,iraq-initials-final-of-seven-latest-oil-contracts.html.