To enjoy the full Mail & Guardian online experience: please upgrade your browser
20 Dec 2009 10:15
Iraq will sign preliminary contracts, from Sunday, with oil companies that bid successfully last week for seven fields, oil ministry spokesperson Assem Jihad said.
The contracts will then be submitted to the cabinet for final approval.
This comes after Iranian troops who for three days controversially occupied a disputed border oil well left the facility during the night but remain on Iraq’s soil, Iraqi officials said on Sunday.
According to US officials in the area, Well 4 lies in disputed territory about 500-metres from an Iranian border fort and about one kilometre from an Iraqi border fort. Well 4 is in the Fauqa Field, part of a cluster of oilfields which Iraq unsuccessfully put up for auction to oil majors in June.
The field has estimated reserves of 1.55 million barrels.
Iraq holds the world’s third-largest crude oil reserves after Saudi Arabia and Iran, with some 115 billion barrels. But wars and the embargo imposed in 1990 have hampered the exploration and development of its oil resources for decades.
Production currently stands at 2.4 million barrels a day, about two million of which are exported. Iraqi oil revenues represent 85 percent of government receipts.
Below are the contracts to be signed
Create Account | Lost Your Password?