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: Exxon Mobil
The Day After
The long-awaited party is over and now the real work is about to start. This is when the winners start going over the nitty-gritty of the model contract to try and tie loose ends in a bid to pull the extra mile out of a service contract. But at the end of the day, a service contract is a service contract. There is only so much one can adjust and…
Early Bonanza
There is a bonanza for international oil companies who managed to make an early entry into Iraq. Operators like BP, Eni, Exxon Mobil – and to a certain extent CNPC which managed to convert its 1997 production sharing agreement for the development of Al-Ahdab field into a service contract last year – will have first call on the limited infrastructure capacity to absorb the new crude they will start pumping…