CAIRO, Jun. 30, 2009 (Kyodo News International) -- Iraq began receiving bids Tuesday for giant oil and gas (OTCBB:GGSIF) development projects from selected foreign companies including international oil majors and Japanese companies, Iraqi officials said.

The first offering of contracts to foreign companies by Iraq in about 40 years since its energy industry was nationalized involves six active oil fields, such as those in Kirkuk and Rumaila, and two undeveloped gas fields.

While Iraq has the world's third-largest proven crude reserves of 115 billion barrels, the six oil fields roughly account for one-third of them.

Iraq plans to boost production of crude oil from 2.4 million barrels per day in 2008 to 4 million barrels in 2013 by introducing foreign capital and technology through the auction in order to secure funds to reconstruct the country.

Companies selected to participate in the auction include Exxon Mobil Corp. (NYSE:XOM) of the United States, BP plc (NYSE:BP) of Britain and Japan's Nippon Oil Corp., Japan Petroleum Exploration Co., Inpex Corp. (OOTC:IPXHY) and Mitsubishi Corp.

The auction was initially slated for Monday and Tuesday but was delayed because of a heavy sandstorm.

Analysts warn that the offered contracts are accompanied by risks such as poor security in the country and an inadequate legal system, as well as domestic resistance to the opening of oil and gas fields to foreign companies.

Iraq plans to auction contracts for 11 untapped oil fields at the end of this year.