OIL, Cairn Energy among 9 cos selected for auction by Iraq

NEW DELHI: Oil India Ltd, the nation's second largest state-run explorer, and Cairn Energy are among the nine companies selected by Iraq as potential bidders for its second round of auction for oil development rights.

OIL along with OAO Rosneft of Russia and Japan Oil, Gas and Metals National Corp were among the nine companies qualified to bid, industry sources said.

Iraq, which holds the world's third largest crude reserves, will offer 11 oil and gas fields in the second round.

A total of 38 companies sought to take part in the round. Sources said, other companies qualified to bid for the second round include OAO Tatneft of Russia, KazMunaiGaz of Kazakhstan, PetroVietnam, Sonangol of Angola and Pakistan Petroleum Ltd.

Iraq desperately wants to bring back foreign investors after six yeas of conflicts and economic sanctions which destroyed its infrastructure.

The country plans to offer oil and gas field development rights in the two bidding rounds. Baghdhad had qualified 35 international oil companies, including Oil and Natural Gas Corp (ONGC) to make offers in the first round and aims to award contracts by June.

The war-ravaged country is aiming to boost oil production to 2.6 million barrels a day by 2009 end, from about 2.4 million bpd currently, and to about 6 million bpd by 2015.