Iraq hopes to sign short-term oil deals next month

By Ahmed Rasheed

BAGHDAD (Reuters) - Iraq's oil ministry has finished negotiations with oil majors on six short-term oil service contracts and hopes to sign the deals during the next month, the Oil Ministry said on Tuesday.

Officials had previously said the deals, which are aimed at lifting output at Iraq's largest producing fields by a combined 500,000 barrels a day, would be announced on June 30.

"The oil ministry hopes these service contracts can be signed during the next month," Oil Ministry spokesman Asim Jihad said.

On June 30, Oil Minister Hussain al-Shahristani would announce which producing fields would be open for long-term development contracts, officials added.

In the absence of a long-delayed national oil law, Baghdad has been negotiating the six short-term technical service contracts with foreign oil majors. The deals are worth around $500 million each.

Five of the deals that have been under discussion are with Royal Dutch Shell, Shell in partnership with BHP Billiton, BP, Exxon Mobil and Chevron in partnership with Total.

Iraq has also been in talks with a consortium of Anadarko, Vitol and Dome for a sixth contract.

"Talks with the six major oil companies are over. Now the licensing and contracts office in the ministry is preparing to receive the bids ... to check them. Then the oil ministry will refer these to the cabinet for approval," Jihad said.