Baghdad:  Iraq today said it would be guided by the principle of competition when awarding contracts to global energy companies hoping to cash in on the country's vast oil and gas fields.

On Monday the oil ministry threw open six oilfields and two gas fields for international bidding by 41 companies, the contracts for which are expected to be signed in June next year.

Government spokesman Ali al-Dabbagh said Baghdad would award the service contracts only on the basis of competition.

"There is no intention of signing oil deals outside the law. The principle of competition will be applied. There is no preference to any company," he said.

The oil contracts, which are service contracts only, pave the way for energy firms based abroad to return to Iraq 36 years after Saddam Hussein threw them out.

The move is seen as the first major step towards developing the world's third largest oil reserves at a time of skyrocketing global crude oil prices.

Separately, Iraq is still negotiating consultancy contracts with some multinatonal firms to source their servies before the long-term deals are finalised.

These companie are Shell, BP, ExxonMobil, Chevron and Total, and a consortium of other smaller oil companies.

Iraq wants to ramp up output by 00,000 barrels per day (bpd) from the current average production of 2.5 million bpd, about equal to te amount being pumped before th US-led invasion in March 2003.

Source : PTI