Iraq Invites Foreign Bids for New Gas Blocks

SEATTLE (Oil Monster): The Iraq Oil Ministry invited bids from international companies for contracts towards exploration and development of natural gas reserves in as many as 11 new blocks. The move is part of the country’s attempts to boost domestic natural gas production to cater to the needs of its power stations and reduce imports from other countries. It must be noted that Iraq had started inviting foreign investment in its oil and gas sector in 2009.

According to the statement issued by the Oil Ministry, eight out of the total eleven blocks are located in western Anbar province. Two are located along province borders, one between Anbar region with Mosul and another with Iraq's southern city of Naja. The remaining block is located in the northern city of Mosul.

The Ministry is said to have completed all necessary preparations for the bidding round. However, the date for the bidding process is yet to be announced.

The recently carried out seismic survey near Basra has boosted Iraq’s oil reserves increased by 10 billion barrels and its natural gas reserves by eight trillion cubic feet. This would lift the country’s proven reserves of crude oil to around 155 billion barrels and natural gas to nearly 140 trillion cubic feet.

Crude oil exports account for more than 90% of the country’s revenues.