With a preponderance of small, state-run Asian firms in the ranks of foreign firms lining up to commence operations in Iraq, Manoucher Takin of the Centre for Global Energy Studies has told Agence France-Presse that flexibility and a tolerance of risk is key to success in the bidding process.

He said that Asian companies such as KazMunaiGas, JOGMEC, Oil India, Pakistan Petroleum and PetroVietnam have all shown themselves to be prepared to take risks and to adapt to conditions of exploration and production.

Francis Perrin, editorial manager of the review Arab Oil and Gas, added that the number of small state firms in the final stage of the latest licensing round "reflects the growing power of Asian national oil companies in recent years, both in the bidding rounds and bilateral agreements".

Chinese state firms National China Petroleum Corp and Sinopec have also made successful bids to the Iraqi Oil Ministry and both are now preparing to begin upstream work in the country.

Shell has this month reportedly been courting both companies to enter into a joint venture for complete the work.

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