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| Iraq welcomes Chinese oil companies bid for new contracts |
| News Archive - Oil, Gas & Petrochemicals - oct news | |
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(KuwaitTimes, Oct 30, 2006) BEIJING: Chinese companies are welcome to bid for energy contracts in Iraq, but all deals reached under former dictator Saddam Hussein must be renegotiated, the Middle East nation's oil minister said yesterday. Hussain Al-Shahristani said three days of talks in China had revealed a keen interest in Iraqi oil, but he cautioned any deal would be subject to a new law expected to be passed before the end of the year. "We welcomed this interest and will facilitate their participation within the framework of the oil and gas law that is being discussed in Iraq," he told reporters in Beijing. The oil minister said he had talks both with leading economic decision-makers and with representatives of China's largest oil firms, including China National Petroleum Corp. (CNPC), the parent of PetroChina. Following this week's talks, CNPC will meet with the Iraqi oil ministry next month for discussions on the development of the Ahdab oil field, an area the Chinese company first signed up with the Saddam regime to explore in 1997. "If an agreement is reached very quickly, then they are expected to start work right away," Al-Shahristani said. For this contract, as for other contracts signed prior to the planned law, new terms have to be negotiated, he said. "All contracts that were signed under Saddam Hussein, or after Saddam Hussein, will be renegotiated based on the oil and gas law," he said. Iraq currently produces 2.5 million barrels of crude oil a day, but hopes to be able to more than double that to six million barrels as early as 2012, he said. As part of this ambitious plan, Iraq intends to soon open up a first batch of oil fields for bids by foreign companies, he said. Qualified companies will be shortlisted based on their experience and capacity, Al-Shahristani said, but declined to say if Chinese enterprises would be among them. "We have not prequalified any companies yet," he said. "But we do know that there is a number of Chinese companies that are actually producing now and they have the experience in field development and also in exploration." source:KuwaitTimes |
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