Iraq To Invite Companies To Develop Nassiriyah Oilfield

Published: 14-May-2009

By: Staff Writer Staff Writer Staff Writer

Oil Minister, Hussain al-Shahristani said that Iraq expects to grant the contract to expand the Nassiriyah oilfield in southern part of the nation to one of three competing international firms in June 2009. Shahristani also said that his ministry has plans to call global firms to bid for developing the southern portion of the East Baghdad oilfield near the Iraqi capital. Eni S.p.A, Nippon Oil Corporation and Repsol YPF, S.A. have presented bids for Nassiriyah oilfield, in the Dhi Qar region.

We hope that the contract would be signed next month, Hussein Shahristani said.

We have accepted the technical bids they submitted and we have opened the commercial bids, Shahristani said.

Iraq had invited the three companies in January 2009 to compete for the field, which has estimated crude oil reserves of around four billion barrels.

He previously has said the field could pump 100,000 barrels per day within 18 months from the commencement of development.

The three would be invited by the ministry for talks in order to discuss the model contract, said Shahristani.

The East Baghdad oilfield presently pumps only about 17,000 bpd, and the ministry is planning to further develop the field, which has estimated reserves of 7.5 billion barrels.

The minister did not reveal the companies that would be invited to compete to expand the southern portion of that field.

Iraq has announced two rounds of bidding, offering 19 oil and gas fields for development to international oil companies with the aim of boosting crude oil output to six million bpd in five years, from about 2.4 million bpd presently.

The oil ministry wants to develop the Nassiriyah oilfield and the southern portion of the East Baghdad field as quickly as possible and so it is offering these two areas outside of the bidding process under engineering, procurement and construction, or EPC, contracts, said Shahristani.

One of the conditions set by the ministry for these contracts is that the companies should have done joint studies with the ministry or worked in the field before.

The East Baghdad oilfield was included in Iraq's second round of bidding announced in December, but Shahristani said the southern portion of that field had been removed from the bidding process while the northern portion would remain.

The ministry has set 29 and 30 June for companies to submit their offers for the six oilfields and two gas fields in the first round of bidding.

Around 32 international companies, including oil majors, are competing for the fields.

We are still committed to that date, Shahristani said.

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