Gulf Oil and Gas accountACCOUNT

Iraq Brings Forward Awarding of New Oil Contracts

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

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 companiesí 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.

OPECís second largest producer, after Saudi Arabia, Iraq decided to change the contracts after a glut caused oil prices to crash in 2014, reducing Baghdadís 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 >>

Australia >>  1/21/2019 - Following the incredible Dorado discovery in 2018, Carnarvon Petroleum and its Joint Venture partner have moved swiftly to commence preparations to ap...
Norway >>  1/16/2019 - Equinor has, together with its partners Petoro, ExxonMobil and Total, proven gas and condensate in the Norwegian Sea Ragnfrid North (6406/2-9 S) explo...

Norway >>  1/16/2019 - Equinor has, together with its partners Petoro, ExxonMobil and Total, proven gas and condensate in the Norwegian Sea Ragnfrid North (6406/2-9 S) explo...
United Arab Emirates >>  1/16/2019 - The Ras Al Khaimah Petroleum Authority and RAK GAS LLC have signed an agreement whereby the Polish company is permitted to explore for and produce hyd...

Brazil >>  1/14/2019 - Petroleo Brasileiro SA - Petrobras reports that it formally expressed to the National Energy Policy Council (CNPE) interest to exercise the pre-emptio...
India >>  1/6/2019 - India's Directorate General of Hydrocarbons (DGH) plans to launch the Open Acreage Licensing Programme Bid Round-II on Monday Jan 7th in New Delhi, ac...

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 | 22 |

More News

Related Links

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