Unitization Dilemma

By Ruba Husari

As Iraq and Kuwait forge ahead with their political rapprochement and the demarcation of their international boundaries, a major milestone will be achieved once an agreement is reached on the joint oil fields that straddle the border between the two states. That’s where Iraq needs all its resources to settle the issue in a manner that preserves its sovereignty and safeguards its interests in a way that does not lead to further claims and counter claims in the future. That’s a task that does not involve just the politicians. In fact, it requires more oil expertise than politics in order to lay the best foundations of the future unitization agreement. What you put in such an agreement would define the future relations between the two countries for decades to come.

The memorandum of understanding that was reached between the two sides stipulates, as announced previously, …

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Abdul Mahdi Al-Ameedi

By Ruba Husari

Abdul Mahdi al-Ameedi, director general of Iraq’s oil ministry’s Petroleum Contracts & Licensing Dept. (PCLD), sheds light on the ministry’s fourth bid round scheduled for May30-31, and the service contract on offer, its advantages and shortcomings, in an interview with IOF editor Ruba Husari in Baghdad. (للنص العربي اضغط هنا)

Q: Offering a service contract type with a fixed fee for oil and gas exploration work is unusual and almost unseen in the industry. How can you justify it?

A: Our justification is that the state considers that production-sharing contracts (PSC) are illegal and unconstitutional since the Iraqi constitution stipulates that oil and gas in Iraq is the property of the Iraqi people. Since a PSC gives foreign companies the right to a portion of the production under the form of profit oil, they are considered in contravention with the current constitution. The other justification …

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