The Ministry of Oil will announce the names of companies who won business contracts in Iraq’s oil industry on the 29th or 30th of this month, Assim Jihad, the ministry’s spokesman.
Jihad, however, did not specify how many foreign firms will eventually be awarded contracts after the second round of bidding.
The decision by Baghdad to award only service contracts to foreign firms differs from the country’s independent Kurdish area, where numerous profit-sharing contracts have been signed.
Iraq expects to produce six million barrels per day (bpd), up from its present planned production of about 2.2 million bpd, within the next four to five years as new projects come on-stream.
Even though Iraq has the world’s third largest proven reserves of oil after Saudi Arabia and Iran, development of the conflict-ravaged nation’s fields has been very sluggish.
The economic publication Middle East Economic Survey (MEES) said in a report in April 2009 that exploitation of oil and gas in Iraq is expected to persist being hampered by the nation’s chaotic politics and unclear project proposals.
Iraq’s cabinet also in May 2009 granted a bill that will hit foreign oil companies with a minimum 35% corporate tax in a bid to increase revenues.
Foreign corporations presently pay a flat tax rate of 15%, according to the finance ministry’s general commission for taxes. The draft law will need parliamentary grant.
