Companies Bid for South Iraq Oil Field

American, Japanese and Chinese companies have submitted bids to develop the al-Qatiaa oil field west of the southern Iraqi city of Nassiriya, according to a report from Bloomberg.

The Oil Ministry is studying the offers from the three companies, Hussein Aziz, head of the municipality of al-Shatra in Nassiriya province, told reporters. He did not name the companies.

The oil field will produce about 300,000 barrels a day, he said. The contract also involves the establishment of a refinery and the drilling of 10 wells, he said.

(Source: Bloomberg)

2 Responses to Companies Bid for South Iraq Oil Field

  1. Ahmed Mousa Jiyad 1st April 2011 at 08:18 #

    The Minister/ Ministry of Oil refutes such claims.
    On 23 March I circulated the following comment among my network and requested the Ministry to clarify the matter publicly on similar of such provincially concluded or intended agreement. Few days latter I was told the Ministry is contemplating the matter, and Aliraqia state TV on 30 March 2011 reported the response by the MoO stating that it’s the responsibility of the federal government NOT the provincial authorities to conclude such contracts. I also wrote to OGJ (USA) making similar comment asking the Journal to publish my feedback, but so far OGJ did not respond, and for understandable reasons.
    This clarification and emphatic confirmation by the Minister of the above role of the federal government is a welcoming response and much appreciated especially it came out during the “Provinces Conference” held at the Iraqi Federal Parliament in Baghdad. What is mandatory for the three Middle Furat/ Euphrates oilfields is also mandatory for Al-Qetaia (within or close to the Garraf oilfield) and any other oil and gas fields.
    Ahmed Mousa Jiyad,
    1 April 2011
    Production-sharing contract for Middle Furat/ Euphrates oilfields?
    Dear friends and colleagues,
    Oil and Gas Journal (USA) reported today that San Leon Energy PLC and its joint venture partner Iraq Al Meinaa Oil Services Co., Baghdad, have signed a joint participation agreement with the Governorate Council of Karbala to develop Kifl, West Kifl, and Merjan (Middle Furat/ Euphrates) oilfields under a production-sharing contract. The Governorate will submit the proposal to the Ministry of Oil, and formal negotiations are to start soon.
    As background the Middle Furat/ Euphrates oilfields were offered in the second bid round but received no bid. The Ministry’s conditions include: 15,000 bd first commercial production; 75,000 bd minimum plateau production for 7 years period; $100 million non-recoverable signature bonus, and $100 million minimum expenditure obligation. The combined proven reserves was 547 million barrels but increased to 1.0 billion barrels after the latest reserves estimates by MoO of October 2010.
    Leaving aside who is San Leon Energy PLC, and Iraq Al Meinaa Oil Services Co., Baghdad and whether they are recognised by MoO according to its qualification standards (as both companies are not included in the 42 list of qualified companies), the claim by these two companies has to be examined taking into considerations:
    1- Direct negotiation between a Governorate and oil companies contravenes the open and transparent bid rounds held so far;
    2- Adoption of a production-sharing contract contradicts the long term service contracts applied for the long term service contracts;
    3- The declared policy is all upstream petroleum development is the sole responsibility of the federal government NOT the governorates.
    The Ministry of Oil is required to clarify the situation and make clear full and affirmative statement on such claim by the mentioned above companies, and post such statement on its website and national media.
    Best wishes and kindest regards.
    Ahmed Mousa Jiyad,
    23 March 2011-03-23

  2. Richard 11th January 2012 at 17:47 #

    San Leon Energy PLC and its joint venture partner Iraq Al Meinaa Oil Services did not qualify for these fields although they did register.