Iraq's oil production costs are amongst the lowest in the world, making it a highly attractive oil prospect for foreign investment.

Following is the current state of oil contracts involving foreign participation, compiled from past announcements and specialised publications.

(The fields below are known structures that are either producing below capacity, in need of repair or not developed at all.

The drilling and repair works were authorised by the United Nations as they were financed by the "oil for food" program.

Production-sharing agreements (PSAs) and production and development contracts (DPCs) involve foreign investment and are therefore subject to the lifting of the UN sanctions imposed 12 years ago.)

- Al Ahdab field, in southern Iraq. PSA signed with China's CNPC in 1997.

- Amara, in the south. DPC signed with PetroVietnam in 2002.

- Bai Hassan, in the north. Russia's Tatneft and Zarubezhneft have drilling contracts.

- East Baghdad, in the center. Several international oil companies said to have expressed interest in developing capacity.

- Gharraf, in the south. Turkey's TPAO seen as main contender.

- Halfaya, in the south. Australia' BHP competing with CNPC, a South Korean consortium, India's ONGC and Italy's ENI.

- Kifl, south of center. Tunisia's ETAP expressed interest.

- Kirkuk, in the north. Tatneft, Zarubezhneft, TPAO and Romania's Petrom have drilling contracts.

- Luhais and the nearby field of Subba, in the south. Russia' TNK and Machinoimport, Sweden's Lundin and CNPC expressed interest.

- Majnoon, in the south. PSA initialed in 1998 with France's TotalFinaElf, not signed.

- Nahr bin Umar, in the south. PSA initialed in 1998 with TotalFinaElf in 1998, but not signed. Zarubezhneft expressed interest.

- Nasiriyah, in the south. ENI and Spain's Repsol expressed interest.

- North and South Rumaila fields, in the south. Russia's Tatneft, Zarubezhneft and Lukoil contracted for repair work.

- Nur, in the south. DPC signed in 2001 with the Syrian Petroleum Company (SPC).

- Ratawi, in the south. Shell (British-Dutch) seen as leading contender. Opposition includes Malaysia's Petronas and Canada's Nexen.

- Saddam, in the north. Tatneft and Zarubezhneft have drilling contracts.

- Tuba, in the south. Consortium made up by Algeria's Sonatrach and India's ONGC and Reliance companies competing against Indonesia's Pertamina.

- West Qurna, in the south. Iraq scrapped in December 2002 a PSA signed in 1997 with a Lukoil-led Russian consortium. The Russian government has protested and Lukoil is maintaining its rights on the field.

According to the US Energy Information Administration, only 15 of Iraq's 73 discovered fields have been developed, because of wars and sanctions.

Beside developing oil fields, Iraq has invited foreign investment in nine exploration blocks in the western desert, stretching from the border with Kuwait to that with Jordan that could add another 100 billion barrels to its proven 112 billion barrels of crude reserves.

Three blocks were awarded, to ONGC in 2000, to Pertamina in 2002, and to Russia's Stroitransgas, in early 2003.

SPACE.WIRE