By Ahmed Mousa Jiyad. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.
The upstream petroleum sector in Iraq has been on a significant development drive, in time and magnitude, since mid-2009, and such development efforts would, if realized, bring outstanding results for Iraq and the world petroleum market.
In a move unprecedented in history, a developing country with significant proven reserves and many giant oilfields offers all its prized petroleum fields for foreign direct investment (FDI).
With an open, TV-covered and competitive biding process over three rounds, Iraq contracted 17 oil and non-associated gas fields. These petroleum fields would be developed by the contracted 18 IOCs from 14 countries, including all the permanent members of the UN Security Council. In addition to the contracted 18 IOCs there will be more business opportunities for the conventional service companies and related companies worth billions of US dollars.
Moreover, the ministry of oil has been preparing for a fourth bid round covering 12 exploration blocks, scheduled for the end of May 2012, after many postponements. Also there are talks about “mini” bid rounds regarding other major oilfields such as East Baghdad, Nassiriya.
Please click here to read Ahmed Mousa Jiyad's full 27-page report, which includes detailed analysis of Iraq's oil contracts and remuneration fees.
Mr Jiyad is an independent development consultant, scholar and Associate with Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: email@example.com).