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: Lukoil
2nd Bid Round: The Results – 11 December 2009
– MAJNOON OIL FIELD: THE BIDDERS: 1. Royal Dutch Shell (60%) – Petronas (40%) FEE BID: $1.39 PLATEAU: 1,800,000 b/d SCORE:100 2. Total (57%) – CNPC (43%) FEE BID $1.75 PLATEAU: 1,405,000 b/d SCORE: 79 Ministry Max Remuneration Fee: not revealed Majnoon contract awarded to SHELL – HALFAYA OIL FIELD: THE BIDDERS: 1. ONGC (50%) – TPAO (30%) Oil India (20%) FEE BID: $1.76 …
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…
The Results
If you are trying to figure out who won and who lost in Iraq’s first bid round, consider this: 22 companies have participated in the licensing round making offers for six oil fields and one gas field, as leaders or members of consortia. One gas field, Mansuriya had no takers. China’s CNPC was the most aggressive taking part in 5 offerings followed by Malaysia’s Petronas which targeted 4. Oil majors…