Iraq's 5th Round Energy Auction to Follow

Following the allocation of only three of the 12 exploration fields on offer in Iraq's 4th round energy auction, the Oil Ministry plans to go ahead with a 5th round auction for more sites.

“Of course, we will prepare for a fifth round, and we have more than 60 blocks ready for bidding,” Oil Minister Abdul Kareem al-Luaibi [Elaibi] told reporters after today’s auction, according to a report from Bloomberg.

“We will start, God willing, during the next months to prepare the data packages.”

(Source: Bloomberg)

6 Responses to Iraq's 5th Round Energy Auction to Follow

  1. Re da Caste 1st June 2012 at 10:08 #

    Why not to recognize the 4th auction was a disaster?? None of the big global players were interested, due to the completely crazy terms offered. It is very surprising they accepted the previous terms. If Iraq was a real democracy, Shahristani and Luaibi should already been dismissed or have resigned. But hopefully Maliki will go soon. He is destroying the country and creating big dissonance among shia, sunni and kurds. Good luck with the signatures Barzani!

  2. Uruki-the-Iraqi 2nd June 2012 at 01:34 #

    Iraq’s 4th round energy auction was not a disaster function and NO it was absolutely NOT a failure especially as far as Iraq’s concern.. One gas exploration block (with high probability) in Diyala & Wasit not far from Baghdad in which the gas will be mainly used to generate power to light up Baghdad and central Iraq and two oil blocks in the south (one in Basra near Iran and the other one in Dhi Qar & Muthanna).. The ones that did not win bids were mostly near Syria, Jordan and Saudi Arabia (due to security and instability reasons) and they were all explorations blocks (low probability) and Iraq was only testing the international oil companies willingness, interest and reserve.. Who cares about these so called big global oil & gas players if they did not bid on these blocks as you claim, not to mention of course it is a loss to the oil players and not to the Iraqis for sure… You know plenty of Oil and Gas will always be there in Iraq’s underground and when it becomes scares, the same big global oil and gas companies will ALL be rushing and competing (again) to sign lucrative deals with Iraq in the NEAR future.. That is if the Iraqis do not develop and produce their own Iraqi Oil & Gas giants after they master the technology and create their own International oil company like Kuwait Energy for example!!.. We will ALL be anticipating and awaiting the next 5th, 6th and 7th, and more rounds with more deals brokered between Iraq’s Ministry of Oil (keep in mind the oil belongs to all the Iraqis and not to a specific ethnicity) and these IOCs.. As to any deal brokered outside the official Iraqi ministry, they are all illegal in the eyes of the Iraqi people and they are all awaiting cancellation!!

  3. sheytanelkebir 3rd June 2012 at 13:37 #

    uruki-the-iraqi is of course correct! here's my perspective... (lets hope that iraqbusiness-news will start looking at things from IRAQ'S rather than FOREIGNERs perspective in future - there's already the WSJ/WP/FT if I wanted to read hard-done-by foreigners' perspectives!)

    a different perspective on the oil exploration blocks would say that, just like Iraq's first service contract auctions it was a "proof of concept" which proved the oil analysts wrong and showed that companies ARE willing to come in and explore on a fixed-fee basis. The fact that only a quarter of the blocks were successfully auctioned off is not a big deal, they can be re-auctioned later on, and, seeing that SOME companies are willing to go into Iraq, will attract others to come in and big for the remaining blocks.

    Another factor is the "safety/security" situation, If Iraq maintains a long safe period (say another 6-9 months) then companies would be more willing to go into the western desert regions, and a reaction would successfully parcel out the exploration blocks.

  4. Re da Caste 3rd June 2012 at 22:55 #

    For a country that needed help from FOREIGNERS to get rid of Saddam, you would probably better to hold a lower profile against them. Besides, if Exxon, Shell, BP, Total and Sinopec bids are not accepted, because the contracts are financially lousy, them you have got a problem with the service contracts. You tell me if people in Kurdistan, where they negotiate production sharing contracts, if their standard of living and progress in general is lower then in southern Iraq. I would say: on the contrary, the rate of development is much higher in Kurdistan. People there is getting much better standards and no security problems at all. The Kurds earlier experiencies are they cannot rely on Baghdad anymore. They need to be the masters of their own health and resources. But they will share it with all Iraqi people! To end I wish to ask you, how can a country with a prime minister that also is minister of interior, defense minister and minister of national security be called a democracy? tell me, please

  5. sheytanelkebir 3rd June 2012 at 23:02 #

    what are you talking about rue da caste? this is about oil bidding rounds. Iraq gives the offer. interested companies give the bids. that is it. what on earth is your tangential blabbering about?

    I want to see the IRAQI PERSPECTIVE published in English. Same naysers were calling Iraq's first round a "failure" because only one contract went (BP/Rumaila)... second round all the IOCs were in there undercutting the FIRST round figures...

    Now the first exploration blocks came online... same westie analysts pooh poohing it... then 3 blocks are taken! wait for round 5 and the rest of the oil companies will capitulate and come in!

    money talks. bull$hit walks.

  6. Re da Caste 4th June 2012 at 17:02 #

    I´m 100% sute the contract will have to change a lot in order to the big players to accept the old communist Shahristanis dreams. But soon both Maliki and Shahristani are toppled and things will change.
    Let's hope Iraq will survive as a hole and not splitted in 3 parts. That's what will happen if Maliki continues to rule as a dictator: pm, interior, defense and national security minister accummulated in the very same person. What a joke! a bad joke...