LONDON, Sept 15 (KUNA) -- Iraq is to host a giant conclave of the worlds biggest oil companies in London next month in a bid to open its vast reserves to long-term drilling contracts and counter impressions that it aims to shut out Western firms, it was reported here Monday.

Baghdad has invited 41 companies, including Royal Dutch ShellRoyal Dutch Shell, BPBP and Gazprom, to the London fair to prepare for the first round of bidding on the Bazargan, Abu Gharab and Fakka oil and gas fields, The Daily Telegraph newspaper said.

"The oil ministryoil ministry will unveil the legal framework and conditions for signing service contracts by qualified oil companies", said a government spokesman.

The contracts will be fee-based.

Iraq holds the worlds third largest oil reserves after Saudi Arabia, and (for now) Iran, with more than 115 billion barrels.

It has nudged up production this year to almost 2.5 million barrels per day with fresh supplies from Kurdistan as the security picture improves, becoming a swing player in the worlds delicately balanced market, the paper said.

Oil minister Hussain Al-Shahristani said he hoped to raise output to 2.7 million barrels per day by the end of this year, but the government has sent out mixed signals over the role of foreign companies in the new investment.

Christopher de Margerie, head of the French group 'TotalTotal', said the country seemed to be sliding back towards protectionism after the government cancelled negotiations for a joint service agreement with TotalTotal and ChevronChevron in the Basra region.

© Copyright Kuwait News Agency 2008.

 

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