A consortium of energy companies led by Italy's Eni has agreed to commercial terms set down by the Iraqi oil ministry for development of the Zubair field, the country's oil minister Hussein al-Shahristani has announced.

In a statement to the press, the minister also revealed that both ExxonMobil and Lukoil have submitted bids that are in line with its requirements for production at the West Qurna-1 field.

"All the oil revenue we receive will be allocated for the reconstruction and rebuilding of Iraq," he told a press conference, with funds likely to be allocated to infrastructural development and primary services as well as training and development programmes.

His comments came ahead of the ministry's second bidding round for production licences in the country, which is due to be held in December.

BP and China National Petroleum Corp were the only companies to secure contracts during the first bidding round, with both firms recently finalising the terms of the licence.

In addition to committing to raising production, both companies have also set aside funds to offer training and development programmes for Iraqis looking to enter the country's oil and gas industry.

Getenergy event for Iraq October 2009