June 1st, 2012

Bid Round Four Results

 

By

Block 1

Bidders & Bids: None

Ministry’s maximum acceptable Remuneration fee: – 

Location: The block lies within the northwestern part of Iraq, about 100 km west of Mosul by the Syria-Iraq border and covers an area of around 7,300 km2.

Geology: Located in Rutba-Jezira tectonic zone, large structures remain undrilled. Two wells have been drilled in the north and the south of the block. Oil was tested from the Miocene and oil shows were obtained from many Mesozoic levels.

Signature Bonus: $15 Million

Minimum Expenditure: $110 Million

Minimum Work Obligation: 1750 km 2-D seismic (or equivalent in 3-D), 1 exploration well

Block 2

Bidders & Bids: None

Ministry’s maximum acceptable Remuneration Fee: – 

Location: The block lies in northwest Iraq, about 150 km West of Tikrit, to the south of Block 1 and covers an area of around 8,000 km2.

Geology: It is located in the Rutba-Jezira tectonic zone, on the Jezira plain so is readily accessible. Several undrilled structures have been identified. One well drilled on this block showed oil stains in the Cretaceous and gas-cut mud from the Khabour formation (Ordovician).

Signature Bonus: $25 Million

Minimum Expenditure: $120 Million

Minimum Work Obligation: 2,000 km 2-D seismic (or equivalent in 3-D), 1 exploration well

Block 3

Bidders & Bids: None

Ministry’s maximum acceptable Remuneration Fee: –

Location: The block lies within the western part of Iraq, about 240 km west of Ramadi and covers and area of around 7,000 km2. Topography is generally desert pavement, except for wadi drainage.

Geology: This block is in the Western Desert, close to, and due west of, the Akkas oil and gas discovery (1993) in Khabour formation. No wells have been drilled in this block.

Signature Bonus: $20 Million

Minimum Expenditure: $110 Million

Minimum Work Obligation: 1,750 km 2-D seismic, 1 exploration well

Block 4

Bidders & Bids: None

Ministry’s maximum acceptable Remuneration Fee: –

Location: The block lies within the western part of Iraq, about 120 km south of Al-Qaim city. Al Rutbah city is located within the block.

Geology: The block is on the Rutbah uplift, south west of the Akkas discovery.

Signature Bonus: $20 Million

Minimum Expenditure: $110 Million

Minimum Work Obligation: 1,750 km 2-D seismic, 1 exploration well

Block 5

Bidders & Bids: None

Ministry’s maximum acceptable Remuneration Fee: –

Location: The block lies in the west part of Iraq, about 20 km south of Al Rutbah city, in the Western Desert and close to the border with Saudia Arabia. The block covers an area of around 7,000 km2.

Geology: The block is on the Rutbah uplift, southwest of the Akkas discovery.

Signature Bonus: $20 Million

Minimum Expenditure: $120 Million

Minimum Work Obligation: 2,000 km 2-D seismic, 1 exploration well

Block 6

Bidders & Bids:  None

Ministry’s maximum acceptable Remuneration Fee: –

Location: The block lies within the southwestern part of Iraqi Western Desert, about 150 km southwest of Al Najaf and covers an area of around 9,000 km2. The block is bounded on the west by the Iraqi-Saudi border line.

Geology: The block is in the Rutbah-Jezira tectonic zone and includes numerous undrilled structures.

Signature Bonus: $20 Million

Minimum Expenditure: $130 Million

Minimum Work Program: 2250 km 2-D seismic (or equivalent in 3-D), 1 exploration well

Block 7

Bidders & Bids: None

Ministry’s maximum acceptable Remuneration Fee: –

Location: The block lies in the central part of Iraq, about 15 km East of Al Najaf and about 30 km south of Hilla and 120 km southeast of Baghdad and covers an area of around 6,000 km2. Al Diwaniya city is located within the block.

Geology: This block is in the center of the oil-prone Mesopotamia tectonic zone and close to existing infrastructure and numerous appraised discoveries.

Signature Bonus: $20 Million

Minimum Expenditure: $100 Million

Minimum Work Obligation: 1,500 km 2-D seismic, 1 exploration well

Block 8

Winner: Pakistan Petroleum

Bidders & Bids:

1. Pakistan Petroleum – Bid: $5.38/boe

2. Japex (80%), Itochu (20%)  – Bid $ 10.57/boe

Ministry’s maximum acceptable Remuneration Fee:  not announced but higher than both bidders

Location: The block lies within the east central part of Iraq, about 40 km east of Baquba and about 110 km east of Baghdad and covers an area of around 6,000 km2.

Geology: The block is on the border between the productive Mesopotamia tectonic zone and Foothill Zones on trend with hydrocarbon bearing structures in both zones.

Signature Bonus: $15 Million

Minimum Expenditure: $100 Million

Minimum Work Obligation: 1,500 km 2-D seismic, 1 exploration well

Block 9

Winner: Kuwait Energy

Bidders & Bids:

Kuwait Energy (Operator): 40%, TPAO 30%, Dragon Oil 30%

Bid: $6.24/boe

Ministry’s maximum acceptable Remuneration Fee:  not announced

Location: The block lies in the southern part of Iraq, approximately 20 km north of Basra city adjacent to the IraqIran border and covers an area of around 900 km2. It is close to infrastructure and numerous producing and appraised oil fields.

Signature Bonus: $25 Million

Minimum Expenditure: $90 Million

Minimum Work Program: 900 km 2-D seismic (or equivalent in 3-D), 1 exploration well

Block 10

Winner: Lukoil

Bidders & Bids:

1. Lukoil (60%), Inpex Corp (40%) – Bid $ 5.99/boe

2. Kuwait Energy (50%),  Dragon Oil (50%) – Bid $ 6.24/boe

3. PetroVietnam (36%), Bashneft (30%), Premier Oil (34%) – Bid $7.07/boe

Ministry’s maximum acceptable Remuneration Fee: not announced

Location: The block lies in the southern part of Iraq, approximately 10 km southwest of Nasriya city. It is approximately 120 km west of Basra and covers an area of around 5,500 km2.

Geology: The block is located on the border between the hydrocarbon rich Mesopotamia tectonic zone and the largely unexplored Salman zone.

Signature Bonus: $25 Million

Minimum Expenditure: $100 Million

Minimum Work Obligation: 1,375 km 2-D seismic, 1 exploration well

Block 11

Bidders & Bids: None

Ministry’s maximum acceptable Remuneration Fee: –

Location: The block lies in the southwest part of the western Iraqi desert. It is approximately 70 km west of  Samawa city and about 80 km south of Najaf city.

Geology: Numerous undrilled structures are identified in this block in the largely untested Salman tectonic zone. One well has been drilled on this block which provided valuable stratigraphic information with regards to the petroleum system and facies changes.

Signature Bonus: $15 Million

Minimum Expenditure: $120 Million

Minimum Work Program: 2,000 km 2-D seismic (or equivalent in 3-D), 1 exploration well

Block 12

No winner

Bidder: Petrovietnam (Operator): 30% , Premier Oil 40%, Bashneft 30%

Bid: $ 9.85/boe

Ministry’s maximum acceptable Remuneration Fee: $5/boe

Location: The block lies within the southwest part of the Western Desert and covers an area of around 8,000 km2. It is approximately 80 km southwest of Samnawa city and about 130 km west of Nasriya.

Geology: The block is in the underexplored Salman tectonic zone. The well drilled on this block indicated oil shows/stains from Kifl and Nahr Umr Formations.

Signature Bonus: $15 Million

Minimum Expenditure: $120 Million

Minimum Work Program: 2,000 km 2-D seismic (or equivalent in 3-D), 1 exploration well

Update July 2012: Contract awarded to  Bashneft & Premier Oil after they agreed to ministry’s maximum acceptable remuneration fee of $5/boe. Bashneft upgraded to operator with 70% stake, Premier Oil 30%.

 

4th Licensing Round . The Forum