Iraq's Second Licensing Round (2009)

From Oil4All
Jump to: navigation, search

The second round of auctions offered by the Ministry of Oil took place over the 11-12 December 2009.[1] The terms and process of the second round were similar to the first,[2] which saw the re-entry into Iraq of international oil companies for the first time since nationalisation of the industry in the 1970s.[3] The lead time to complete the auction process was faster for the second round than the first because the preliminary work had been done.[4]

Ten major oilfields were up for bid in the second round, which produced deals for seven of those fields. The fields receiving successful bids were Halfaya, Majnoon, Qayara, Badra, Garraf, Najmah and West Qurna 2. The three fields receiving no bids were East Baghdad, the Eastern Fields and Middle Furat.[5]

Process

In all, a total of 40 companies pre-qualified for the bidding round[6] after submitting data proving they met the Iraqi Oil Ministry's criteria for technical, financial, legal, training, and HSE (Health, Safety and Environment) competence.[7] The second round followed the same procedures as the first round with few deviations.

Results

There were 17 bidding consortia in total, and the seven winning consortia gained access to fields with proven reserves of 32 billion barrels of oil, or over a quarter of Iraq's proven reserves. The production projections from the companies winning bids in the second round had the potential to add about 4.765 million barrels of oil to its daily production total.[8]

The fields awarded lie in five of Iraq's eighteen provinces, four in southern provinces (Basra, Maysan, Dhi Qar, and Was it) and one in a northern province (Nineve).[9]

The table below shows the make-up of the consortia, along with agreed per-barrel remuneration fees and the agreed level of plateau production they should reach:

Field Company Home country Company type Share in field Service fee per barrel ($) Production increase (bpd)
Halfaya CNPC China State 50% 1.40 535,000
Petronas Malaysia State 25% 1.40 535,000
Total France Public 25% 1.40 535,000
Majnoon Shell UK/The Netherlands Public 60% 1.39 1.8 million
Petronas Malaysia State 40% 1.39 1.8 million
Qayara Sonangol Angola State 100% 5 120,000
Najmah Sonangol Angola State 100% 6 110,000
Badra Gazprom Russia State 40% 5.50 170,000
Kogas South Korea State 30% 5.50 170,000
Petronas Malaysia State 20% 5.50 170,000
TPAO Turkey State 20% 5.50 170,000
Garraf Petronas Malaysia State 60% 1.49 230,000
Japex Japan Public 40% 1.49 230,000
West Qurna 2 Lukoil Russia Public 85% 1.15 1.8 million
Statoil Norway State 15% 1.15 1.8 million
[10]

References

  1. "2nd Round of Bidding On Iraq’s Oil Fields Ends As A Success", Musings on Iraq, 14 December 2009.
  2. "Take Two: Iraq's All-Important Licensing Round", Offshore Technology 7 December 2009.
  3. "Shell wins Iraq oil ‘gold rush’ auction", Financial Times 11 December 2009.
  4. "Iraq's Second Petroleum Licensing Round", Oil ministry website, retrieved 2 August 2010
  5. "2nd Round of Bidding On Iraq’s Oil Fields Ends As A Success", Musings on Iraq, 14 December 2009.
  6. "Iraq’s Second Oil Bidding Round Bolstered by Exxon, Eni Deals", Bloomberg, 10 December 2009.
  7. "Announcement", Petroleum Contracts and Licensing Directorate, retrieved 8 December 2011.
  8. "2nd Round of Bidding On Iraq’s Oil Fields Ends As A Success", Musings on Iraq, 14 December 2009.
  9. "Oil Stampede: Iraq,s 2nd Bid Round Results", Wikileaks, 14 December 2009.
  10. "Second Licensing Round Bidding Results", Petroleum and Contracts Licensing Directorate, 12 December 2009.