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Iraq adds Turkey's TPAO for future deals
The Iraqi Oil Ministry spokesman said didn't provide the company names but said they are state-owned firms from Turkey, Vietnam, Pakistan, Thailand, Angola and Algeria.
Monday, 23 June 2008 11:10

The Iraqi Oil Ministry added six more oil companies, including a Turkish state-owned firm, to a list of 35 permitted to bid for future oil and gas deals, the ministry spokesman said Sunday.

Assem Jihad didn't provide the company names but said they are state-owned firms from Turkey, Vietnam, Pakistan, Thailand, Angola and Algeria.

In April, Iraq's Oil Ministry qualified 35 companies to bid for tenders to develop the nation's oil and gas fields. Turkey's state-owned Turkish Petroleum Corporation (TPAO) was not included in the list, disappointing Ankara.

Although a medium-sized company in its field, Turkish Petroleum International Company Ltd. (TPIC), established in 1988 as a TPAO subsidiary to operate in all branches of the oil industry, is one of few companies with a good knowledge of Iraq's geological particularities, as TPAO has been researching hydrocarbon exploration and production opportunities in Iraq since 1994.

Jihad added that the ministry is planning to issue another invitation for companies to submit their qualification documentation to compete for the development of smaller oil and gas fields. He didn't say when the new invitation would be issued but said they would go out as soon as the ministry finished awarding the first round of tenders.

Baghdad is about to sign Technical Support Agreements (TSAs) with international oil firms to boost its current 2.5 million barrels per day output by 600,000 barrels. The New York Times reported Thursday that Shell, BP and Exxon Mobil and Total were the four major companies close to signing deals, along with Chevron and some smaller companies.

Iraq sits on an estimated 115 billion barrels and it also has an estimated 112 trillion cubic feet of natural gas reserves, according to the ministry -- making it one of the most oil rich countries in the world.

Earlier this month, Iraqi Deputy Prime Minister Barham Salih had already expressed willingness to include Turkish companies in new tenders to develop the country's oil and gas fields, calling Turkey a gateway for Iraq to open up to Europe.

"I spoke with Energy Minister Hilmi Güler and Prime Minister Recep Tayyip Erdoğan, and I told them that we have been planning to include some major Turkish companies on the list of companies which will invest in the Iraqi oil sector. Both President [Jalal] Talabani and Prime Minister [Nouri] al-Maliki want Turkish companies to be on this list," Salih was quoted as saying at the time.

Turkey's long-stalled bilateral relationship has entered a new phase via a landmark visit paid by Iraqi President Talabani to the Turkish capital in March. Accompanied by Cabinet ministers including those in charge of energy, Talabani said then his country sought strategic partnership with Turkey in all aspects.

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