A group led by US oil major ExxonMobil is the front runner among bidders to develop Iraq's West Qurna oilfield, one of several fields left unclaimed after Iraq's June auction of contracts.

Sabah Abdul Kadhim of Iraq's Petroleum Contract and Licensing Directorate yesterday said Exxon's bid to boost West Qurna phase one's long-term production to 2.1 million barrels per day (bpd) put it ahead of rival Lukoil, which had proposed a target of 1.5 million bpd.

'The difference is the plateau production,' Kadhim was quoted as saying in our sister publication, the Gulf Daily News.

'So the position of Exxon is a little bit stronger,” Kadhim said ahead of workshop on Iraqi oil contracts.

International oil companies are close to reaching deals with the Iraqi government that would almost triple Iraq's output and make it one of the world's top oil producers.

Exxon Mobil accepted the Iraqi government's proposal of a remuneration fee of $1.90 per barrel and the two sides were discussing 'small issues,' such as taxes, Kadhim said.

Exxon is bidding with Royal Dutch Shell for the West Qurna contract, which has reserves of 8.7 billion barrels.

Lukoil is working with ConocoPhillips. Kadhim also said the Iraqi cabinet may this week approve a contract won by a group led by Italy's ENI for the Zubair oilfield, with reserves of 4 billion barrels. – TradeArabia News Service