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Iraqi oil for sale in TV auction | Iraqi oil for sale in TV auction |
(about 1 hour later) | |
There has been slow progress so far in the live television auction for contracts to run six oil fields and two gas fields in Iraq. | |
The auction is the first big oil tender in Iraq since the invasion of 2003. | |
Under the service contracts, successful bidders will be paid a certain amount for each barrel they produce above a specified minimum production level. | |
But the highest bidders for two of the fields have asked for more than the oil ministry is prepared to pay. | |
They have been given extra time to consider lowering their prices. | |
A third field that has been put up for auction has received no offers. | |
Raising production | |
The 20-year contracts have attracted interest from 31 oil firms including Exxon Mobil, Royal Dutch Shell and Total. | |
Iraqi officials say companies from nations involved in the 2003 invasion will be neither favoured nor disadvantaged. | |
The auction was originally planned for Monday but had to be delayed because of sandstorms in Baghdad. | The auction was originally planned for Monday but had to be delayed because of sandstorms in Baghdad. |
"Our principal objective is to increase our oil production from 2.4 million barrels per day to more than four million in the next five years," Oil Minister Hussein al-Shahristani told Iraqi public television. | "Our principal objective is to increase our oil production from 2.4 million barrels per day to more than four million in the next five years," Oil Minister Hussein al-Shahristani told Iraqi public television. |
Iraq has the world's third-largest proven oil reserves with 115 billion barrels, of which the fields up for auction account for about 43 billion barrels. | Iraq has the world's third-largest proven oil reserves with 115 billion barrels, of which the fields up for auction account for about 43 billion barrels. |
But there has been some controversy about the auction, with members of the Iraqi parliament objecting to not having the chance to approve the deals. | But there has been some controversy about the auction, with members of the Iraqi parliament objecting to not having the chance to approve the deals. |