First Bid Round Revisited

Lukoil’s Vagit Alekperov said his company has now changed its mind on West Qurna -1 oil field following a detailed analysis and is now ready to follow in the footsteps of BP/CNPC and sign up to develop the field for a $1.9/bbl remuneration fee, the maximum fee the Iraqi oil ministry was willing to offer oil companies when the first licensing round bids were opened on June 30. Lukoil is…

2nd Bid Round

International oil companies who attended Iraq’s 2nd bid round roadshow in Istanbul Tuesday were unfazed by the growing tension in Baghdad ahead of the January legislative elections. The 42 companies who attended – out of 45 who have been prequalified to participate in the bid round – will compete for 10 contract areas, four of which include the giant fields of Majnoon, West Qurna-2, East Baghdad and Halfaya. The short…

Iraq Watch – Zero-Sum Game

6 February 2009 Collapsing oil prices and dwindling revenues are forcing Iraq’s oil ministry to review the terms of the first bid round it launched last summer. After all, the state entity might not be able to finance a 51% carried interest in each of the six oil fields as stipulated in the bid round’s tender protocol and draft model contract. As a result, companies meeting ministry officials at a…