China National Petroleum Corp. (CNPC), the country’s biggest energy producer, will bid for the Nasiriya oil field in southern Iraq, the National Business Daily said.

Iraq Business News reported Tuesday the Iraqi oil ministry is planning to auction the giant 'Nasiriya Integrated Project’ - which involves the development of a $4.4-billion oil field and the building of a 300,000 bpd refinery in its south- on 19th December. A total of 52 international oil companies would be able to take part in the bidding round.

CNPC reportedly has already qualified for the bidding process and is one of the seven companies shortlisted last month.

Inside sources confirmed CNPC's strong interest in the project with the National Business Daily Tuesday but declined to reveal more details.

Industry analysts say CPNC's chances of winning the bid are extremely high, but warned that concentrated investments in the war torn country also mean high risks here.

CNPC is currently involved in operation of three other Iraqi oil fields under the framework of technical service contracts. However, political instability in the country has slowed work and resulted in some losses for the company.

According to a preliminary draft contract disclosed by Iraqi media, terms will be different from the technical service contract awarded to companies during previous bidding rounds for oil and gas fields.

The new contract will offer investors a share in project revenues, but only when production begins. And investors would have to pay some 35% taxes on the profit they made from Nassiriya project, the same amount as in previous deals.