The IOCs are BPof the UK, the Royal Dutch/Shell Group, Total of France and ExxonMobil Corporation, ChevronTexaco Corporation, and ConocoPhillips Petroleum Company- all of the US.

The response came after a mid-July meeting held in London by KPC on the proposed scheme. 'A detailed presentation was made on the 60-page proposed OSA [operating service agreement]. At the meeting, KPC spelt out the complete operating process and the fiscal model,' says an industry source (MEED 4:7:03).

In early June, KPC issued a draft of the proposed 20-year OSA to be signed with the successful bidding consortia. IOCs have been invited to form a three-member group from among the 17 companies prequalified for the position of non-operator. The bidding consortia will comprise an IOC, which will be designated operator, and non-operators. At least four consortia, led by BP, ChevronTexaco, Shell and Exxon, are expected to bid.

By 18 August, the consortia are due to submit changes to the proposed OSAs. The next stage in the project implementation will be the submission of development plans by 1 September.

Project Kuwait is a $7,000 million scheme aimed at enlisting the support of IOCs to double oil production at the five northern fields to 900,000 barrels a day over four years. The fields are Rawdhatain, Sabriyah, Bahra, Abdali and Raqta.

Kuwait has long harboured plans to open up its upstream oil sector to IOCs. However, opposition from the National Assembly (parliament) - on the grounds that the scheme is unconstitutional - has impeded progress. 'IOCs were informed in the London meeting that KPC will present a final draft of the OSA to the [parliament] finance committee before signing any agreement with a [successful] consortia,' the source says.