With Oil Minister Sharistani signalling that Iraqi oil fields are going to be thrown open for investments worth $20 billion this autumn, top oil companies are maneuvering to win a stake in their oilfield of choice.
Multinationals are poring over data from Iraq's oilfields to gain the edge when bidding begins and are ready to act quickly but have noted that with the lack of investment laws and security drilling in Iraq might not be imminent.
Right conditions will have to be met before a company commits to investmemt.
Iraqi officials assure that their country's oilfields have not been assigned in advance and that a transparent process where the best bid wins shall be put in place.
They are fully aware that oil majors like Shell, BP, ExxonMobil, Chevron and Total are vying for Iraq's cheap and easy-to-produce reserves.
Over the past 3 years, many firms have been involved in technical studies and training programs that allow them regular access to oil ministry officials outside Iraq. An Iraqi official said that those firms who are acquainted with them will stand a better chance when the investment opportunities open up.
The majors have been scrutinizing data on southern Iraq oilfields that could boost production by as much as 3 million barrels per day and have made recommendations on production policy for certain fields.
Some majors gathered a wealth of information from a decade when Iraq was under UN sanctions and have an edge on certain fields due to this spadework.
Though Total was in line for Majnoon and Bin Umar, ENI and Respol interested in Nassirivah and Shell looking into Ratawi, officials say that the final competition will be wide open.
Iraq has been struggling to pump 2 million bpd after reaching close to 3 million bpd prior to the US led invasion in March 2003.
With the country struggling with sabotage and mismanagement, multinationals have been helping trouble-shoot at North and South Rumaila and other problem oilfields to ensure the country's production and exports.
The majors have certainly not wasted the last three years.
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