Iraq to outline oil contracts to companies

Iraq will provide foreign oil and gas companies with details of service contracts under which it hopes the companies will help boost the country's oil output by 1.5 million barrels per day.

A delegation led by Iraq's Oil Minister Hussain al-Shahristani will present pre-qualified companies with geological data on the fields, as well as details on the financial terms of the contracts and the process for applying at a meeting in London on Monday.

Shell and BP were among the companies that helped appraise the fields.

Forty-one companies, including most of the big international oil companies, have qualified to bid, said a Reuters report.

Oil executives agreed that no decisions were likely to be made on Monday.

While the improved security climate in Iraq is easing one main deterrent to investment in Iraq, oil companies generally do not like service contracts as these cap their gains.

The contracts are expected to attract strong interest.

The oil fields open for long-tern development contracts are Rumaila, Kirkuk, Zubair, West Qurna Phase 1, Bai Hassan and the Maysan fields. Maysan comprises three fields, Bazargan, Abu Gharab and Fakka.

Two gas fields, Akkas and Mansuriyah, are also open.

Iraq said it wants to sign the deals by mid-2009.