LONDON - Any increase in world oil output would not have a significant impact on record-high crude prices that are being driven by speculation, Iraq's oil minister said on Tuesday.
Regulations needed to be introduced to stabilize oil markets, Hussain al-Shahristani said in an interview with Reuters.
"I do not think increasing any amount in the international market will have a significant impact on the prices," he said.
"It is up to the stock exchange and the regulations in the industrialized nations. It is not something OPEC can contribute to," he said.
"We did not see any impact on the prices from the Saudi's previous increase," he said.
Top oil exporter Saudi Arabia is poised to boost production in July to its highest level in decades as it looks to tame runaway oil prices. Saudi Arabia already raised output in May.
Oil prices have doubled in a year to hit a record close to $140 a barrel on Monday. Saudi Arabia has called a hastily convened meeting of oil producers and consumers in Jeddah on June 22 in an effort to stabilize the market.
Shahristani, who will not attend the Jeddah meeting, reiterated that Iraq had boosted oil output to more than 2.5 million barrels per day (bpd) in June, the highest level since the U.S.-led invasion in March 2003.
The holder of the world's third-largest oil reserves aimed to boost output by another 300,000 bpd by the end of the year, he said.
"Any additional increase in production will all go to exports," he said.
Iraq is an OPEC member, but it is free to set its own production levels after years of sanctions under Saddam Hussein.
CONTRACTS TO COME
Baghdad hoped to sign short-term technical service contracts with international oil companies to boost output at some of its largest producing oilfields within two weeks, Shahristani said.
"We are reaching the end of our discussions and there are some drafts that are ready ," he said.
Iraq needs billions of dollars to rebuild its economy and overhaul the energy industry after years of sanctions and war. International oil companies are keen to invest in Iraq as they struggle for access to new oil and gas reserves worldwide.
Iraq is in final negotiations with the companies for the six deals, the minister said.
Five of the deals under discussion are with oil majors Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz), Shell in partnership with BHP Billiton (BHP.AX: Quote, Profile, Research, Stock Buzz), BP (BP.L: Quote, Profile, Research, Stock Buzz), Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz) and Chevron (CVX.N: Quote, Profile, Research, Stock Buzz) in partnership with Total (TOTF.PA: Quote, Profile, Research, Stock Buzz).
Iraq is also in talks for a sixth deal with a consortium of Anadarko (APC.N: Quote, Profile, Research, Stock Buzz), Vitol and Dome.
Shahristani said that Baghdad also plans to offer many of the same fields in a bidding round for long-term development projects soon.
"We're going to announce the first licensing round by the end of this month or early next month," he said. Baghdad has prequalified 35 companies to bid for the contracts.
The fields on offer in the bidding round would include West Qurna, Zubair, Kirkuk, Bai Hassan and Bazargan oilfields, he said.
The Akkas and Mansuriyah gas fields would also be included in the round, he added.
Regulations needed to be introduced to stabilize oil markets, Hussain al-Shahristani said in an interview with Reuters.
"I do not think increasing any amount in the international market will have a significant impact on the prices," he said.
"It is up to the stock exchange and the regulations in the industrialized nations. It is not something OPEC can contribute to," he said.
"We did not see any impact on the prices from the Saudi's previous increase," he said.
Top oil exporter Saudi Arabia is poised to boost production in July to its highest level in decades as it looks to tame runaway oil prices. Saudi Arabia already raised output in May.
Oil prices have doubled in a year to hit a record close to $140 a barrel on Monday. Saudi Arabia has called a hastily convened meeting of oil producers and consumers in Jeddah on June 22 in an effort to stabilize the market.
Shahristani, who will not attend the Jeddah meeting, reiterated that Iraq had boosted oil output to more than 2.5 million barrels per day (bpd) in June, the highest level since the U.S.-led invasion in March 2003.
The holder of the world's third-largest oil reserves aimed to boost output by another 300,000 bpd by the end of the year, he said.
"Any additional increase in production will all go to exports," he said.
Iraq is an OPEC member, but it is free to set its own production levels after years of sanctions under Saddam Hussein.
CONTRACTS TO COME
Baghdad hoped to sign short-term technical service contracts with international oil companies to boost output at some of its largest producing oilfields within two weeks, Shahristani said.
"We are reaching the end of our discussions and there are some drafts that are ready ," he said.
Iraq needs billions of dollars to rebuild its economy and overhaul the energy industry after years of sanctions and war. International oil companies are keen to invest in Iraq as they struggle for access to new oil and gas reserves worldwide.
Iraq is in final negotiations with the companies for the six deals, the minister said.
Five of the deals under discussion are with oil majors Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz), Shell in partnership with BHP Billiton (BHP.AX: Quote, Profile, Research, Stock Buzz), BP (BP.L: Quote, Profile, Research, Stock Buzz), Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz) and Chevron (CVX.N: Quote, Profile, Research, Stock Buzz) in partnership with Total (TOTF.PA: Quote, Profile, Research, Stock Buzz).
Iraq is also in talks for a sixth deal with a consortium of Anadarko (APC.N: Quote, Profile, Research, Stock Buzz), Vitol and Dome.
Shahristani said that Baghdad also plans to offer many of the same fields in a bidding round for long-term development projects soon.
"We're going to announce the first licensing round by the end of this month or early next month," he said. Baghdad has prequalified 35 companies to bid for the contracts.
The fields on offer in the bidding round would include West Qurna, Zubair, Kirkuk, Bai Hassan and Bazargan oilfields, he said.
The Akkas and Mansuriyah gas fields would also be included in the round, he added.
