Iraq is set to award international oil companies rights to develop a portion of its massive crude and gas reserves, pressing ahead with a bidding round amid calls from some lawmakers to delay the process.
More than 30 companies will compete today to secure a stake in developing six oil and two gas fields in Iraq's first bidding round since the country's oil industry was nationalised in 1972.
Iraq desperately needs the technical expertise and capital of the oil majors to revive an oil sector reeling from decades of neglect, sanctions and corruption.
The country, whose 115 billion of crude gives it one of the world's largest proven reserves of oil, is hoping to ramp-up production to about four million barrels per day from current levels of about 2.4 million barrels per day.
Meanwhile, Iraqi Vice-President Tareq Al Hashemi said he will boycott an auction to award contracts for eight oil and gas fields, saying parliament needs more time to study the country's first major oil tender since 2003.
Some of the biggest energy firms, including Exxon Mobil, Total and Royal Dutch Shell, are competing to develop the six oilfields and two gas fields in the tender, which has drawn opposition.
"There are many existing reservations over this vital issue concerning Iraq's oil resources," said Hashemi in a letter to Oil Minister Hussain Al Shahristani.
He urged the minister to "hold off on awarding bids to the winning companies and give parliament enough time to study these bids", said the letter, released by Hashemi's office.
Iraq has the world's third-largest proven oil reserves, estimated at 115 billion barrels.
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