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FINANCIAL NEWS
Iraq invites oil firms for bidding round on Rumaila
18 Feb 2007
(MENAFN) Iraq has invited ten oil firms to bid for drilling 56 new wells in the Rumaila oilfield, in line with the government’s efforts to raise cash to rebuild its battered economy after years of war and sanctions, Reuters reported.
Iraq, along with British oil major BP and its Chinese partner CNPC, have selected the ten firms, including Halliburton Co, Schlumberger Ltd, Baker Hughes Inc and Weatherford International Ltd, as well as Chinese firms and a Turkish firm. The state-owned Iraq Drilling Company was also invited to bid.
Director of the Oil Ministry’s licensing office, Abdul-Mahdy Al-Ameedi, said that the ministry prefers to directly invite companies who have worked before with the South Oil Co, BP and CNPC, as it seeks to shorten the procedures and time needed.
He said that the ministry asked the selected firms to submit their bids and the best commercial tenders will be selected, but he declined to disclose an estimate for the value of the bids.
It is worth noting that BP and CNPC signed a 20-year development contract last year for the super-giant Rumaila field, which has 17 billion barrels of estimated crude reserves and is the workhorse of Iraq’s oil industry.
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