Iraq oil bids run into trouble
Güncelleme Tarihi:
AP
Oluşturulma Tarihi: Temmuz 01, 2009 00:00
BAGHDAD - Iraq's long-awaited licensing round to develop some of its massive oil reserves stumbled Tuesday as oil and gas companies dug in their heels, demanding more money for their efforts.
Oil companies submitted bids for six oil and two gas fields more than 30 years after Saddam Hussein nationalized the oil sector and expelled foreign firms.
Disputes over how much the companies would get for producing over a minimum output target cast a pall on a process heralded as offering Iraq the key to rebuilding its economy.
Two consortiums submitted offers for the Rumaila field, which holds 17.8 billion barrels of crude. Britain’s BP and China's CNPC made up the first consortium, while Exxon Mobil and Malaysia's Petronas comprised the second.
Under the service contracts, the companies would be paid a per barrel fee for any crude they produce in excess of a minimum production target. The Exxon Mobil-led consortium requested $4.8 per barrel for production over the minimum and BP wanted $3.99 per barrel. The Oil Ministry was willing to pay $2 per barrel. BP agreed to match the ministry's price and won the contract for Rumaila.
No bids were offered for the Mansouria field. Four consortiums submitted bids to develop the 4.1 billion barrel Zubair oil field. The groups were led by India's ONGC, China's CNPC, Italy's Eni and Exxon Mobil.
A consortium made up of ConocoPhillips and China's CNOOC and Sinopec was the only bidder for the 2.4 billion barrel Bai Hassan field in the Kirkuk region in the north. But ConocoPhillips, which bid $26.7 per barrel for output over the minimum, refused to match the ministry's estimated per barrel payment of about $4.
CNOOC led a consortium that was the only bidder for the Missan fields - three adjacent fields offered as one bloc. But the Chinese firm, which had bid $21.4 per barrel, refused to match the government's $2 per barrel price. The Kirkuk field also drew one bidder.
Disputes over how much the companies would get for producing over a minimum output target cast a pall on a process heralded as offering Iraq the key to rebuilding its economy.
Two consortiums submitted offers for the Rumaila field, which holds 17.8 billion barrels of crude. Britain’s BP and China's CNPC made up the first consortium, while Exxon Mobil and Malaysia's Petronas comprised the second.
Under the service contracts, the companies would be paid a per barrel fee for any crude they produce in excess of a minimum production target. The Exxon Mobil-led consortium requested $4.8 per barrel for production over the minimum and BP wanted $3.99 per barrel. The Oil Ministry was willing to pay $2 per barrel. BP agreed to match the ministry's price and won the contract for Rumaila.
No bids were offered for the Mansouria field. Four consortiums submitted bids to develop the 4.1 billion barrel Zubair oil field. The groups were led by India's ONGC, China's CNPC, Italy's Eni and Exxon Mobil.
A consortium made up of ConocoPhillips and China's CNOOC and Sinopec was the only bidder for the 2.4 billion barrel Bai Hassan field in the Kirkuk region in the north. But ConocoPhillips, which bid $26.7 per barrel for output over the minimum, refused to match the ministry's estimated per barrel payment of about $4.
CNOOC led a consortium that was the only bidder for the Missan fields - three adjacent fields offered as one bloc. But the Chinese firm, which had bid $21.4 per barrel, refused to match the government's $2 per barrel price. The Kirkuk field also drew one bidder.