Iraq to start 2nd bidding round for oil, gas contracts

Special report:

Tension escalates in

Iraq

BAGHDAD, Dec. 23 (Chinese media) -- Iraqi Ministry of Oil has announced it will

open its second licensing round for international companies to develop the

country's oil and gas fields at the end of the year, according to a ministry

statement received by Chinese media on Tuesday.

The statement said that Oil Minister Hussein al-Shahristani will announce

the petroleum fields that his ministry intends to develop in cooperation with

the pre-qualified international oil companies on Dec. 31.

In April, the ministry said that only 35 companies and consortia out of 120

applicants were qualified to criteria put by the ministry to bid on its

contracts.

Oil prices fell below 40 U.S. dollars per barrel last week, the lowest in

more than four years.

Iraq offered six oil and two gas fields in the first licensing round.

Iraq oil reserve is reportedly to be the world's third-largest, which needs

billions of dollars investment to overhaul its oil industry infrastructure and

increase oil and gas output after years of sanctions and war.