Ministry unveils tough terms for 4th bid round

IOC officials express skepticism as model contract tightens cost-recovery mechanism and gives Oil Ministry the authority to delay production.
Iraq Oil Minister Abdul Karim Luaibi gives welcoming remarks at the Fourth Licensing Round roadshow in Amman, Sept. 11, 2011. (BEN LANDO/Iraq Oil Report)

AMMAN, JORDAN - Although Iraq has launched the bid round that global oil companies have been waiting for — deals to prospect for oil and gas in some of the world's richest unexplored geology — the contract terms are not all the companies had been hoping for.

The spectacle of the fourth bidding round Jan. 25-26 will be familiar, with foreign oil company officials dropping bids into a clear box on stage, on live TV; but the selection criteria will change. The sole bidding parameter will be the fee each contractor would charge for every barrel of oil equivalent (BOE) produced.

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