10-07-06

Iraq plans to invite international oil companies to help develop its giant oilfields before the end of this year, Oil Minister Hussain al-Shahristani told.
“These are major projects, giant oilfields,” Shahristani said on his arrival in Kuwait.
Iraq, home to the world’s third biggest oil reserves which are estimated at 115 bn barrels, needs up to $ 20 bn in foreign investment to boost production. But multinationals have been waiting for a new investment law, expected to be approved later this year, and for security to improve.

Asked if oil majors are slated to take part in big oil projects in Iraq, Shahristani said: “Yes, definitely. It’s going to be public tendering. We’ll declare which oilfields will go first and then the oil company is free to apply.”
The minister was asked when the tendering process would start.
“Before the end of this year... We have to decide on the types of contracts that we will be interested in.”

Shahristani repeated that Iraq is now exporting up to 1.9 mm bpd of crude oil, its highest level since the war, after the army took over security of the vital northern pipeline to the port of Ceyhan in Turkey. State marketer SOMO this month issued three sell tenders of Kirkuk crude after nearly a year-long halt due to repeated sabotage. SOMO aims to secure long term supply deals as it maintains the flow of Kirkuk.
“Iraq is currently producing about 2.5 mm bpd and exporting 1.8 to 1.9 mm barrels ... It will all be sold by contracts, long-term contracts,” said Shahristani, who is visiting Kuwait as part of an Iraqi delegation headed by Prime Minister Nuri al-Maliki.

Iraq is exporting up to 1.9 mm bpd of crude oil, its highest level since the war, after the army took over security of the vital northern pipeline to Turkey, the oil minister said.
“Crude oil exports from Turkey’s Ceyhan terminal have begun and the oil ministry has repaired the pipeline and is providing round-the-clock security through the Iraqi army,” Hussain al-Shahristani told in Abu Dhabi. “Iraq’s production now stands at 2.5 mm bpd and exports now range between 1.8 and 1.9 mm bpd,” he added.

The pipeline’s security had previously been assigned to a special force, distinct from the army and police, and frequent attacks continued to devastate oil infrastructure in the northern area surrounding the giant Kirkuk oilfields. The sabotage-plagued line had been mostly idle since the 2003 US-led invasion and Iraq had been relying almost solely on southern exports of Basra Light crude, sales from which are running at about 1.5 mm bpd.
The minister did not say when the army had taken on the security role. Exports in June rose to their highest level since October 2004 as crude from Iraq’s giant Kirkuk oilfields began flowing to Ceyhan port after a break of almost a year, shippers said.