Gulf Oil and Gas accountACCOUNT

Iraq to Auction Oil Exploration Contracts

Source: Reuters 4/23/2018, Location: Middle East

Iraq will hold an auction to award exploration and development contracts to international energy companies on Thursday, the oil ministry said in a statement.

Iraq is offering 11 new blocks for exploration in border areas with Iran and Kuwait and in offshore Gulf waters. Fourteen companies have expressed interest in the bidding round, the oil ministry said on April 14.

Oil companiesí offers will be received at a ceremony at the oil ministry starting at 10 a.m. (0700 GMT) on Thursday and the auction results will be announced later in the day, the ministry said in its statement.

It is the third time the auction date has been changed. The blocks were initially to be auctioned in June, but the date was brought forward to April 15, then postponed to April 25 to give bidders more time, the oil ministry said at the time.

Last month the ministry announced measures to reduce the fees paid to oil companies in the contracts to be auctioned.

The new contracts will exclude oil by-products from the companiesí revenue, establish a link between prevailing oil prices and their remuneration, and introduce a royalty element.

Oil companies operating 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.

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 such fees.

Companies including BP, Exxon Mobil, Eni , Total, Royal Dutch Shell and Lukoil have helped Iraq expand 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 it controls in northern Iraq under a production-sharing model that is more profitable to companies.

The new contracts offered by Baghdad will also set a time limit for companies to end gas flaring from oilfields they develop.

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.

Iraq hopes to end gas flaring by 2021. Flaring costs the government nearly $2.5 billion in lost revenue each year and could meet most of its unmet needs for gas?fired power, according to the World Bank.

Exploration News in Iraq >>

Kazakhstan >>  12/4/2018 - Reach Energy has announced that its exploration well, North Kariman-3 ('NK-3'), located in the North Kariman field in the onshore Emir Oil Concession ...
Russia >>  11/29/2018 - Rosneft Oil Company and Chinese Hengli Group signed a cooperation agreement as part of the first Russian-Chinese energy business forum. The document w...

South Africa >>  11/29/2018 - South Africa will relax a moratorium on gas and oil exploration licences implemented earlier this year to allow exploration and production application...
Russia >>  11/28/2018 - The Board of Caspian Sunrise is pleased to provide the following update at its BNG Contract Area: ...

United States >>  11/27/2018 - EnVen Energy Corporation announced that it spud its King Crab well on Ewing Bank Block 873 in its Lobster field. The King Crab well targets an oil-fo...
Georgia >>  11/26/2018 - Frontera Resources Corporation, the European-focused oil and gas exploration and production company, announced the mobilization of a workover rig to T...

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 |

Oil & Gas Projects in Iraq >>

More News

Related Links

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