Iraq offers oil fields under the new conditions of the contracts


Monday 24-10-2016 | 7:20:08

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Twilight News / launched the Iraqi Oil Ministry, a new round of bidding to develop 12 oil fields and small and medium will directly negotiate the terms with the companies at a time when it is trying to move from service contracts concluded by the former to develop giant fields system.

The distribution of the fields before the three provinces and includes four and five in Basra, Maysan and three in central Iraq, according to the tender published the location of the Iraqi Oil Ministry documents on the Internet.

The companies qualifying advance to the round of 19 companies, including six Japanese companies and Emirati include Dragon Oil and Mubadala Petroleum and Crescent Petroleum and also Glencore Swiss for exploration and companies from China, Russia, Italy, Kuwait, Indonesia, Vietnam, Thailand and Malaysia.

The new call will allow oil companies “to submit their proposals for the contract as business and financial models” in an apparent shift from the service used in the giant oil fields south of the country for decades.

The ministry will conduct direct negotiations with foreign oil companies, individually or in the form consortiums and will use the talks as a basis for the establishment of development and production contracts

Under service contracts used by Baghdad in the rounds after 2003, including those of the southern oil giant Bhakolha such as Rumaila and West Qurna 1 and 2 and crazy ministry paid for oil majors fixed fees denominated in dollars for each barrel of oil being produced.

While this was a good model for Baghdad, when oil prices were high, the price decline over the last two years to make Baghdad pay the same fees for companies such as BP, Exxon, Shell and Lukoil at a time when oil sales revenue dropped significantly.

The Oil Ministry said repeatedly it wants to renegotiate the terms of service contracts with international oil companies to link the fees received by companies in exchange for the development of its fields to oil prices as well as the burden-sharing with the companies when the drop in crude markets.

Companies that have not been pre-qualified in the tender after paying fees worth 15 thousand dollars and provide proof of the technical and financial capabilities have been involved. The Ministry of Oil information and data in all fields crafted bag About compared to 50 thousand dollars.

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