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Iraq qualifies 4 Chinese firms for oil contracts

(Xinhua)
Updated: 2008-04-16 10:43

Four Chinese oil companies were among 35 companies that qualified to participate in Iraq's coming licensing round for oil and gas contracts, the Iraqi Oil Ministry said on Tuesday.

A statement issued by the ministry said that CNOOC China LTD, CNPC, Sinochem and Sinopec Group won rights to bid tenders to develop oil and gas fields in Iraq.

From 120 applicants around the world, only 35 companies and consortia, were qualified in accordance to criteria put by the Iraqi Oil Ministry, according to the statement.

It said that these companies "can participate in the coming licensing round for planned oil and gas fields which will be announced in due time."

The list contains names of various world oil firms, among which there were seven US companies, including oil major Exxon Mobil Corp and three British, including giant BP Group PlC.

Iraq will invite the qualified oil companies to bid for oil and gas service contracts in all Iraq's regions soon, an official in the ministry's media office told Xinhua by telephone, without specifying a date.

Oil firms that failed to qualify for the first round could still compete for qualification for the second and later rounds, the official said.

Early in January, Iraq's oil ministry had asked international oil companies to register with the newly set-up Contracts and Licensing Office of the ministry and set February 18 as the final day for receiving registration documentation.

It said only qualified firms can bid for tenders to develop Iraq's vast oil reserves.

Iraq oil reserves is said to be the world's third-largest, which needs billions of dollars of investment to overhaul its oil industry infrastructure and increase oil and gas output after 13 years of sanctions and war.

Iraq produces around 2.3 million barrels per day of oil, but has more than 115 billion barrels of proven crude reserves, it was reported.