Comments on: Ministry claims oil policy vindication

By: resubmitted

resubmitted — Wed, 07 Apr 2010 08:23:10 +0000

[...] Capital said on Friday. Mr. Mihaylo previously made an offer of the same price in June. The ...Ministry claims oil policy vindication - Iraq Oil ReportExxon Mobil, Lukoil, Conoco Phillips, Eni, Occidental and Kogas have all resubmitted bids for either [...]

By: Big companies getting closer to big Iraq oil fields - Iraq Oil Report

Big companies getting closer to big Iraq oil fields - Iraq Oil Report — Mon, 23 Nov 2009 03:39:31 +0000

[...] ministry said it has since better explained its terms but largely stuck to them. At a press conference last week in Baghdad announcing West Qurna and Zubair developments, Oil Minister Hussain al-Shahristani and [...]

By: Turbon

Turbon — Sat, 17 Oct 2009 21:01:43 +0000

I have heard that the auctions doen't go to well for Iraq - this because 2$ per barrel isn't intressting to work for...

I believe the companies can get better deals up in the north with the Kurds. Build independent pipelines to several friendly nations of today and export with good rewenues!

By: Ahmed M. Jiyad

Ahmed M. Jiyad — Fri, 16 Oct 2009 19:37:41 +0000

Three conclusions can be drawn from the ENI/Zubair deal:
First, the conclusion of the Zubair deal would mean that the ENI/ Oxy/Kogas consortium had reduced its Remuneration Fee-per additional produced barrel-RF/b from $4.80 to $2.0 (representing a reduction of 58.3%, though in June bid they reduced their RF from $4.80 to $4.40), and with its Plateau Production Target-PPT of 1,125,000 bd, it would have 930,000 bd of additional capacity over the Initial Production Rate-IPR of 195,000bd stated by the Ministry of Oil-MoO.

The second significant development is the exclusion of the Chinese SINOPEC from this consortium. This indicates that Baghdad means business and its deed matches words regarding IOCs involvement with KRG contracts. This could have further implications consolidating Baghdad position and stand on these contracts.
The expulsion of SINOPEC has also implications on the participation interests within the consortium. For June bid the participation interests were: ENI 35%, SINOPEC 20%, Occidental (Oxy) 25% and Korea Gas Corporation-Kogas 20%. It remains to be seen how the 20% share of SINOPEC is distributed among the remaining three partners or a fourth partner had come instead? This could have consequences on the cost-structure of the consortium and thus might have contributed to the reduced RF! However, Iraq could claim the share of SINOPEC and with this it increases the State-partner’s participation interest from 25% to 45% and could request it to be carried-over as well.

Finally and incidentally, nothing surfaced regarding CNPC/BP (66.67: 33.33), which had the most favourable candidacy on the Zubair oilfield considering its initial RF $4.09 and its, though slightly low, PPT of 1,075,000. Does the absence, so far, of CNPC/BP from the race for this oilfield indicates an Iraqi-risk exposure limitation or capacity-constraint of both IOCs- BP and CNPC?

For further discussion see my forthcoming article entitled “Benchmarking the Remuneration Fees for the Iraqi oilfields” due to appear on MEES soon.

Ahmed Mousa Jiyad,
Norway.
Mou-jiya@online.no
16th October 2009

By: Bryan Joo

Bryan Joo — Thu, 15 Oct 2009 01:00:59 +0000

What is the meaning of SINOPEC got into Zubair? Once you said SINOPEC will be banned because its acquisition of Addax.
Is it a sign you've changed your mind?

I personally guess it is a big improvement between tensions in both Bagdad and Erbil. Isn't it?

Bryan Joo from S.Korea.

By: r dobie langenkamp

r dobie langenkamp — Wed, 14 Oct 2009 15:26:38 +0000

This is a huge victory for Sharastani.

Exxon and others have in effect by their reticence verified the stringency of the Sharastani approach.Who can argue that he hasn't made a very good deal for Iraq. With BP/CNPC/Exxon/Eni/Lukoil all going full tilt to earn their 1$ a barrel for incremental production(after taxes and back-in) Iraq should be above 6 mbd within 5-6 years.-----R.Dobie Langenkamp