Another 6 Companies Added to Iraq’s 4th Energy Auction

Reuters reports that Iraq has approved six more energy companies to participate in its 4th energy auction, raising the number of pre-qualified bidders to 46.

“We have six companies that were not qualified first, but after reviewing their information, we asked them to submit further documents to support their position. We have decided to qualify them after they offered the required documents,” Abdul-Mahdy al-Ameedi, director of the oil ministry’s contracts and licensing directorate, told the agency.

Ameedi said the six new companies were: Dubai-based oil explorer Dragon Oil Plc , Glencore International Plc , Gulfsands Petroleum Plc , China’s Zhenhua Oil, Vitol Holding BV and Romania’s Romgaz.

The other 40 companies are listed here.

The Oil Ministry has excluded U.S oil company Hess Corp because the company signed deals with Iraq’s northern Kurdish region.

The auction for 12 new exploration blocs, scheduled for late January, is expected to add 29 trillion cubic feet of gas and 10 billion barrels of oil to Iraqi reserves. Iraq will meet with executives from the energy companies at a roadshow on 11th September in Amman, Jordan and present a data package with initial tender protocols to the companies on 12th Sept.

(Source: Reuters)

2 Responses to Another 6 Companies Added to Iraq’s 4th Energy Auction

  1. […] post:  Another 6 Companies Added to Iraq's 4th … – Iraq Business News Posted in Business, Education, News Tags: 4th-round-oil-licences, agriculture, business, dubai, […]

  2. Ahmed Mousa Jiyad September 8, 2011 at 5:26 am #

    Few observations worth highlighting:
    1- The 46 qualified (out of 50 applied) companies from 26 countries is an indicator of internationalisation of the Iraqi petroleum upstream sector. This is a positive development away from the dominance of few powerful IOCs and countries.
    2- More than half of these companies are from Asia and the region. This could have implications on future Iraqi oil marketing configuration.
    3- The background of most qualified companies would indicate that the contract should be more focus on “exploration” only NOT “exploration and development”.
    4- The disqualification of Hess, similar to that with Sinopec in Zubair service contract, would indicate that the Ministry still firm on its stand of blacklisting companies that had concluded contracts with KRG. This again has implications to the current tension between the federal and KR government pertaining the proposed oil and gas law.
    5- The powerful presence of 9 Japanese companies signifies the recent emphases given to oil and gas in Japan in the wake of the disastrous tsunami and the decision to reduce dependence on nuclear energy. The ministry of oil should pay special attention to this matter as it provides significant strategic advantage for Iraq to have very attractive bidding results for the best interest of Iraq.

    Ahmed Mousa Jiyad,
    Iraq/ Development Consultancy and Research,
    Norway.
    [email protected]

    8 Sept 2011

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