MADRID (Thomson Financial) - French oil major Total is on the verge of
signing a service contract in Iraq but does not expect to make major investments
in the country this year, the group's president said on Tuesday.
Christophe de Margerie told a news conference at the World Petroleum
Congress in Madrid that Total was negotiating a technical service contract
together with Chevron Corp to help develop the West Qurna oil fields in Iraq,
which is home to the world's third-largest oil reserves.
"We are on the verge of signing a service agreement contract," he said. "We
hope to sign a contract in the days, weeks to come. There are not many details
to iron out.
"These are just transitory contracts. That is what we can do today because
of the security problem. 2009 is probably too short a time frame to carry out
major investments," he added.
Iraq is producing 2.5 billion barrels of oil per day, which is short of its
potential to put out six billion barrels per day, Margerie said.
"When will it produce this amount? Don't ask because I don't have the
answer," he said, adding the International Energy Agency's forecasts for Iraqi
oil production had been consistently wrong.
Iraqi Oil Minister Hussein al-Shahristani said on Monday his government was
still negotiating with Total, Chevron, Shell, BP and a consortium of other
smaller oil companies to develop six oil blocks and two gas fields.
"We did not finalise any agreement with them because they refused to offer
consultancy based on fees as they wanted a share of the oil," he told a news
conference.
Exxon chief executive Rex Tillerson meanwhile told the gathering in Madrid
he was optimistic of reaching a deal with the Iraqi government.
"I am very hopeful for Iraq. What role we may play today and in the future
is entirely up to them," he said at a joint news conference with Margerie.
tf.TFN-Europe_newsdesk@thomsonreuters.com
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