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$2.5 billion to increase oil production
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Translated by IRAQdirectory.com - [3/22/2008]
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An Iraqi government adviser said on Wednesday that Iraq is expected to pay up to $2.5 billion for five major oil companies to increase the country's oil production by approximately one quarter. Baghdad is about to sign technical support contracts with B.B, Royal Dutch Shell, Exxon Mobil, Chevron and Total to add 500 thousand barrels a day to the country's current production of 2.27 million barrels per day.
Thamir Al-Ghadban, adviser of Iraqi Prime Minister Nuri al-Maliki on energy, said that he expects to sign the contracts by early next month and the two- year contracts can be extended one more year. He added in an interview that the rough estimate shows that it might cost between 400 and 500 million dollars for a single field, thus the government had pay a total of two billion and 2.5 billion dollars to the companies over two years. Al-Ghadban said that representatives from Iraq met with officials from the companies last week in the Jordanian capital of Amman to discuss the final details of the contracts, including whether the costs will paid in cash or with oil.
Officials at B.B said they are holding talks on the southern Rumaila oil field, while Chevron and Total both are looking into the West Qurna oil field, as for Exxon Mobil, it is examining Al-Zubayr field; Shell is looking forward to work in the northern Kirkuk field in addition to being a partner to B.H.B Billiton in the field of Southern Missan.
More than 100 companies registered themselves to compete for oil exploration and to win contracts services to assist in the development of Iraq's reserves, which are the third largest reserves in the world.
Al-Ghadban said that the government expects to issue the list of eligible companies next month after month from the date that was previously anticipated. He added that it is necessary to complete the technical support contracts with the five major companies before the government moves to other contracts.
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