'Eastern Fields' oil fields

The 'Eastern Fields' is the collective name for a group of four undeveloped fields; Gilabat, Khashem AlAhmar, Nau Doman and Qumar. The fields are located in Diyala governorate in north-eastern Iraq, some 100-150km south of Kirkuk city.

The fields were discovered in 1927 (Khashem Al-Ahmar), 1958 (Gilabat), 1976 (Nau Doman) and 1979 (Qumar). As of December 2009, eight wells had been drilled at the contract area, two in Khashem Al-Ahmar, three wells in Gilabat, two wells in Nau Doman and one well in Qumar. Oil and gas discoveries have been made in multiple reservoirs in the four field, confirmed by successful well tests.

Al-Qaida and other insurgent groups have been active in the area around the fields, and pose an added risk to investors and workers. They are also grouped in disputed territories fought over between Iraq's Arabs and Kurds.

Contract Negotiations
Following Iraq's second postwar licensing round, the Petroleum Contracts and Licensing Directorate (PCLD) of the Ministry of Oil announced in December 2009 that no bids had been received for the Eastern Fields contract area. According to Iraq Oil Report, the Iraqi Oil Ministry wanted the fields to be producing at 80,000 barrels per day (bpd) within seven years and then maintained for another seven years. The winning bidder would have to pay a $100 million and would be required to spend at least $150 million in project costs, which would be refundable. =References=