Four oil majors return to Iraq

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IRAQI RETURN: Four Western oil companies are close to signing oil contracts with the Iraqi government that will return them to the country for the first time in 36 years. (Getty Images)

Four Western oil companies are close to signing oil contracts with the Iraqi government that will return them to the country for the first time in 36 years, the New York Times reported in its online edition.

Exxon Mobil, BP Plc, Royal Dutch Shell and Total, which had partnerships with the Iraq Petroleum Co. before the industry was nationalized by Saddam Hussein, as well as Chevron and a number of smaller oil producers, have been in talks with the oil ministry, it said.

The newspaper cited information from the ministry, oil companies and an American diplomat.

The deals are expected to be announced on June 30 and will be awarded on a no-bid basis. They will be an extension of current agreements in which the companies are providing free advice and training to the Iraqis.

A total of 46 companies, including those from China, India and Russia have memorandums of understanding to provide that assistance to Iraq but were not awarded contracts.

The deals for the four companies will be service contracts, in which they are paid for their work rather than offered a license for Iraq's oil deposits. (Reuters)

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