Iraq opens more oil and gas projects for bids

Iraq's Oil Ministry said yesterday that it has invited local and international oil companies to bid for contracts including one to develop a natural gasfield in the west of the country.

Iraq opens more oil and gas projects for bids
The ministry has set a deadline of April 24 for companies to submit detailed plans to help develop the Akkas gasfield, located in the former insurgent stronghold of Anbar province, the ministry said on its website.

The Akkas field has estimated reserves of more than 2.15 trillion cubic feet (60 billion cubic metres). Most of the country's vast petroleum wealth is located in the north and the south. Development of the Akkas field could boost the economy in the areas, where support for the government remains tenuous.

Detailed design

Companies interested in submitting a detailed design, which would include a procurement of all equipment and required materials for the western province's Akkas gasfield, must meet the ministry's deadline of April 24, the ministry said on its website. Early this year, the ministry said it was negotiating with Royal Dutch Shell to conduct output tests for the field which has five wells that are ready to be interconnected.

It could produce up to 50 million cubic feet a day as a first stage which could be increased to 500 million cubic feet a day at later stages that planned be pumped through Syria to consumers in Europe.

In a separate tender, the ministry has also invited companies to submit detailed engineering study and procurement of equipment and materials of two oil pipelines linking the Basra oil fields in southern Iraq with Iran's Abadan refinery.

The project's aim is to export crude oil and import multi-products through Shatt Al Arab waterway, the ministry said.

Deadline

Offers must be submitted no later than 0900 GMT on April 24.

Iraq's Oil Minister Hussain Al Shahristani earlier said the crude pipeline would pump some 100,000 barrels a day of Basra Light to Iran, Dow Jones News-wires reported. Basra crude would be sold to Iran in accordance with international oil prices, he added.

When the two countries signed the agreement last year, they didn't spell out costs of the two pipelines, which will each be between 50 kilometres and 75 kilometers long.

However, they said the two pipelines would be financed by a $1 billion loan granted by Tehran to Baghdad earlier this year. Iraq has the world's third-largest oil reserves with an estimated 115 billion barrels.

Agencies
Last Mod: 25 Mart 2008, 08:48
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