By Xinhua
Baghdad : The Iraqi cabinet gave the green light for its oil ministry to sign contracts with international oil companies to develop oil fields in northern and southern of the war-torn country, an Oil Ministry official said on Thursday.
“The ministry received signal from the cabinet to negotiate with international oil companies to develop the oil industry and not wait for the controversial oil law which the parliament is facing difficulties to pass it,” the official in the Oil Ministry media office told Xinhua.
Iraq is pushing to increase its average crude production by about 500,000 barrels a day from the current average of 2.3 million barrels per day, the source said on condition of anonymity.
The source did not give names or number of companies that the ministry may invite to bid for technical-service contracts.
He said that his ministry will ask the companies to offer their management experience, oil field studies and consultation on technology, while the Iraqi side will provide labor.
Iraqi parliament has still not approved a new oil law to regulate the international oil companies’ work and share Iraq’s rich oil resources among the country’s Shiites, Sunni Arabs and Kurds.
While Iraq is still relying on an oil law of the Saddam Husseinera, the Kurds angered the Sunni and Shiite Arab leaders last fall when they signed oil contracts with international oil companies.