Gulf Oil and Gas accountACCOUNT

Iraq Brings Forward Awarding of New Oil Contracts

Source: Reuters 4/1/2018, Location: Middle East

Share |
Iraq plans to award oil and gas exploration and development contracts in 11 new blocks on April 15, oil ministry spokesman Asim Jihad said.

Iraq had initially set June 21 as the date to open the bids for the new blocks, located in border areas with Iran and Kuwait, and in offshore Gulf waters.

Bidding documents will be made available to oil companies planning to make offers on April 13, Jihad told Reuters. The offers will have to be submitted on April 15 and the winners will be announced the same day, he added.

The oil ministry announced measures to reduce the fees received by the oil companies from the government in the new contracts.

The new contracts will exclude oil by-products from the companies’ revenues, establish a linkage between prevailing oil prices and their remuneration, and introduce a royalty element.

Oil producers in Iraq currently receive a fee from the government linked to production increases, which include crude and oil by-products such as liquefied petroleum gas and dry gas.

OPEC’s second largest producer, after Saudi Arabia, Iraq decided to change the contracts after a glut caused oil prices to crash in 2014, reducing Baghdad’s ability to pay the fees.

Companies including BP, Exxon Mobil, Eni , Total and Royal Dutch Shell helped Iraq grow its production in the past decade by over 2.5 million barrels per day (bpd) to about 4.7 million bpd.

The semi-autonomous Kurdistan Regional Government produces oil and gas from fields under its control in northern Iraq under a production sharing model more profitable to companies.

The new contracts offered by Baghdad will also set a time limit for companies to end gas flaring from oil fields they develop on territory under its control.

Iraq continues to flare some of the gas extracted alongside crude oil at its fields because it lacks the facilities to process it into fuel for local consumption or exports.

Iraq hopes to end gas flaring by 2021, which costs nearly $2.5 billion in lost revenue for the government and would be sufficient to meet most of its unmet needs for gas?based power generation, according to the World Bank.

Exploration News in Iraq >>

Russia >>  10/10/2018 - NOVATEK has announced that its wholly owned subsidiary Arctic LNG 3has completed the testing of the first exploration well at the North-Obskiy license...
Colombia >>  10/9/2018 - Frontera Energy Corporation announced a light oil discovery from its Acorazado-1 exploration well on the 100% owned and operated Llanos-25 block in Co...

Mexico >>  10/9/2018 - Pemex CEO, Carlos Trevino, confirmed the discovery of seven reservoirs in two new wells in Mexico’s Southeast Basin, named Manik-101A and Mulach-1, wh...
Libya >>  10/8/2018 - Libya’s National Oil Corporation, BP and Eni signed an agreement expected to lead to Eni and BP working together to resume exploration activities on a...

Mozambique >>  10/8/2018 - The Mozambican government had signed oil exploration agreements with U.S. energy firm Exxon Mobil and Russia’s Rosneft. Mozambique’s National Petroleu...
Australia >>  10/5/2018 - Central Petroleum Limited, as Operator and 100% owner of Palm Valley Gas Field, announces that the Palm Valley 13 well (“PV13”), as of this morning, i...

Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Transportation, 4X4 Trucks  Utility Systems  Water Supply Services  Welding Products/Services 


Iraq Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 |

More News

 

Oil & Gas Companies in Iraq >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.