Royal Dutch Shell is at an early stage of negotiations with national oil majors China National Petroleum Corporation (CNPC) and Sinopec as it pursues upstream opportunities in Iraq, a spokesperson for the company has confirmed.

Speaking to the Independent, the unnamed representative said that the company was considering prospects for a joint venture in the country, which is beginning to open up its vast reserves to foreign development.

The country's oil industry has been hit by years of underinvestment and international sanctions that have precluded development of infrastructure and skills in the sector.

However, since last year Iraqi authorities have launched two lucrative licensing bidding rounds, with the two Chinese majors winning rights to develop fields in the Kirkuk fields in the north of the country.

Yesterday (April 20th), Halliburton's chairman, president and chief executive officer David Lesar said that the company would look to pursue opportunities in Iraq and other new markets after reporting disappointing first-quarter North American drilling operations.

Getenergy Exploration and Production News