BAGHDAD - THE Iraqi Oil Ministry has invited three international oil companies to bid on developing a prized oil field in southern Iraq as part of an accelerated plan to boost production, a senior oil official said on Tuesday.

The official said invitations were sent to France's Total SA, Chevron of the US and Norway's StatoilHydro ASA to offer proposals to develop Nahr bin Umar oil field in Basra.

He added that the contract will be for engineering, procurement and construction services, known as EPC contract. More companies could join the bidding.

The field has about 6.6 billion barrels of reserves and a potential production of 440,000 barrels per day.

Alarmed by plummeting oil prices, Iraq is struggling with poor oil infrastructure and shortage in funds to increase the daily production of about 2.4 million barrels a day to boost its budget.

Iraq, which holds the world's third-largest known oil reserves of at least 115 billion barrels, is suffering a financial squeeze as prices plummeted. -- AP