Italy's energy company Eni SpA (E) will bid on a first round of oil and gas tenders in Iraq, Eni's Chief Executive Paolo Scaroni told La Repubblica in an interview published in its Wednesday Internet edition.
"Yes, we will participate and we have decided to open an office in Baghdad. The current security situation allows us to do what a year ago seemed impossible," he told the newspaper.
On Monday, Iraq announced the first round of tenders to develop oil and gas fields as the country seeks to boost output by 1.5 million barrels a day.
Foreign firms that want to bid for the long-term contracts should open an office in Baghdad and will be required to open a branch if their bid is successful.
Despite tensions between Iran and the U.S., Scaroni said his company has no intention of exiting Iran, where Eni is honoring two contracts signed in 2001.
"We have invested a lot in the Iranian projects and if we were to leave today we would lose between $2 billion and $3 billion. We have explained that to the Bush administration, to investors and to the Italian government, highlighting that we have no intention of striking new contracts, but that we can't afford to leave (Iran) without significantly hurting shareholders," Scaroni was quoted as saying.
He added that Eni would leave Iran only if the Italian government were to ask the company to do so or if there were a decision by the United Nations.
On the relentless increase of oil prices, Scaroni didn't rule out that crude prices could continue to rise, even up to $200 per barrel, after settling at nearly $141 per barrel on Tuesday.
"The price will continue to increase until there's a correction in Western demand," he said, adding that "energy efficiency is the real key to stop (oil) price hikes."