Iraq throws open door to foreign oil firms

Shahristani said he hoped contracts could be signed in June 2009 to raise output by a combined 1.5 million barrels per day at those fields. He added Iraq aimed to raise output to 4.5 million bpd by 2013 from the current 2.5 million bpd.

He said any firm that wanted to bid must open an office in Baghdad. Few foreign companies have any presence in Iraq because of the security situation.

Julian Lee, senior energy analyst at London's Centre for Global Energy Studies, said Iraq was a bit like Russia in the early to mid 1990s.

"No matter how risky you think it is, as an individual company you can't afford to be the only major international player that isn't interested," he said.

FRUSTRATION

Iraq said last week it also hoped to sign six short-term oil technical support contracts during the next month.

But Shahristani, showing frustration, said talks on deals that were supposed to quickly boost output at fields by utilising the technical expertise of majors were still going on.

He said the firms were reluctant to sign the technical support contracts because they would offer their advice from abroad and preferred to be hands on with the fields.

"We are losing time," Shahristani added.