The Iraqi government is on the final stages of negotiations to sign contracts left from the June energy auction after some giant oil companies agreed on fee terms put earlier by Iraqi Oil Ministry, an Iraqi top oil official said Tuesday, Xinhua reported.
The consortium, made up of the Italian ENI, Occidental Petroleum Corporation of the United States, China Sinopec and Korea Gas Corporation of South Korea, is "qualified to take up the Zubair field and we will finalize the contract," Oil Minister Hussain al-Shahristani told a news conference in Baghdad.
The Zubair oil field in Basra in southern Iraq currently produces around 227,000 barrel per day (bpd) and has reserves of around 4 billion barrels, according to earlier information released by the Iraqi oil ministry.
The consortium agreed to be paid 2 U.S. dollars as service fee for each extra barrel of oil it extracts on top of current production of oil at the field, Shahritani said, adding that the Iraqi terms say that the oil production has to be increased by 1. 125 million bpd within six years.
Shahristani also confirmed that the consortium would also have to pay taxes to the Iraqi government on its profits.