Iraq intends to sign Technical Support Agreements (TSAs) with foreign oil majors by the end of June to add an eventual 500,000 barrels per day (bpd) in output capacity, a specialist newsletter quoted the oil minister as saying.
Five consortia are in talks with the Iraqi government for the two-year contracts, the Middle East Economic Survey said in its edition to appear on Monday. The agreements cover Kirkuk field (Shell), Rumaila (BP), Al-Zubair (ExxonMobil), West Qurna Phase I (Chevron and Total), Missan province development (Shell and BHP Billiton) and the Subba and Luhais fields (Anadarko, Vitol and the UAE's Dome), MEES said.
"Four companies have been informed that time is running out," Oil Minister Hussein Shahristani told the newsletter, as his ministry continues to push hard to fast-track the TSA signings.
Shahristani said the companies have been given the option of being paid in either cash or crude. The TSAs are a bridging contract designed to fast-track foreign oil involvement in Iraq, while a new hydrocarbons law has yet to be passed by the Iraqi parliament.
Shahristani said Iraq hoped to add 300,000 bpd of output capacity by the end of this year. Iraq is also working to launch an upstream bidding round this year that, unlike the TSAs, is expected to require the prior passage of the new
hydrocarbons law. "We are working on a development round. We have a draft contract prepared. We are working towards having it ready for July," the minister said. Iraq's current output is estimated at around 2.5 million bpd.
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