IRAQ has further pushed back the schedule for its fourth oil and gas licensing round from March to April 11-12 in response to bidders asking for more time to prepare.
The Oil Ministry’s Petroleum Contracts and Licensing Directorate (PCLD) moved the scheduled deadlines in October to March 7-8 to allow participating companies to study data.
“We have decided to delay...in response to requests from companies to give them more time to study conditions of the licensing round and the draft contract model,” Abdul Mahdy Al-Ameedi, head of the Oil Ministry's PCLD, told Dow Jones Newswires.
About 46 energy companies have qualified to participate in the bidding round of 12 exploration blocks, which is expected to add 29 tcf of gas and 10 billion barrels of oil.
He told the newswire that 37 international firms have paid participation fees and bought data packages for the 12 blocks. He named only two of nine firms that didn't buy these packages – Japan’s Itochu and TNK BP.
Ameedi said the ministry will also consider requests from companies to slightly revise the draft contract.
Prequalified companies will compete based on fees that they will charge for exploring in these untouched blocks. One category will be allowed to bid as operators for the blocks; a second category will be allowed to participate in consortia led by operators.
This includes Mubadala Oil & Gas of Abu Dhabi, Dubai-based independent Dragon Oil, Kuwait Energy of Kuwait, Syrian-player Gulfsands Petroleum, China’s Zhenhua Oil, Swiss outfit Vitol, Romania’s Romgaz and commodities giant Glencore will compete with international and regional firms.
BP, Shell, ExxonMobil, Lukoil, Total, China National Petroleum Corp (CNPC), Eni, Occidental Petroleum and Chevron were among the foreign oil majors selected.
It also includes nine Japanese firms such as INPEX, Japan Oil, Gas and Metals National Corp (JOGMEC), Mitsui Oil Exploration Co, JX Nippon Oil & Gas Exploration Corp (JX-NOEX), Itochu, Mitsubishi, and Japan Petroleum exploration (Japex).
Hess was disqualified last week after the ministry said it participated in Kurdistan contracts.
Iraq has already awarded 15 oil and gas deals to international energy companies since 2008. The foreign companies are seen as key to helping Iraq revamp its vital oil sector after years of war and sanctions.
Oil News | Middle East
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