In retrospect, and despite what was considered at the time a ridiculously low fee, producing oil fields awarded to international oil companies in the first bid round turned out to be the most lucrative in terms of the service fee they will be paid. That’s excluding the three fields that will be producing less than 200,000 b/d (see table below). Even with the protracted negotiations over amendments to the final producing…
Tag: 1st bid round
Final Tasks
The formal signing Sunday of the final agreement for the development of the Majnoon oil field in southern Iraq by Royal Dutch Shell and its Malaysian partner Petronas, set the ball rolling for a series of signatures this week and next. By the end of January, all contracts awarded in the first and second bid rounds will become effective and operators will start the actual work on the ground. Southern…
A Shell Stunt
After watching Royal Dutch Shell go for the kill on Majnoon oil field, I’m stunned and I’m sure I’m not the only one. I expected companies to try and undercut each other to win one of the fields offered in the second bid round, before the door of Iraq oil closes again. But I didn’t expect them to go way below the maximum remuneration fee the oil ministry was willing…
Iraq Vs Opec
Thamir al-Ghadban writes: “In view of the country’s need for greater revenue to satisfy its people’s needs and its desire to improve the living conditions after the long years of deprivation; the lost capacity over the past three decades which benefited other producing countries many of which sit on hundreds of billions of dollars in sovereign funds; forecasts of future supply and demand and the expected decline in the output…