Lord Howell of Guildford, UK Minister of State for the Foreign and Commonwealth Office, speaking at CWC‘s Iraq Petroleum 2012 conference in London, said the terms of offer for the next round of energy licences must be considerably better than those for the fourth round which concluded at the end of May.
"The results of the fourth oil and gas bidding round last month were, frankly, disappointing, with only three of twelve blocks awarded. A combination of factors including unattractive contract terms and geologically riskier acreage led to a luke-warm response."
"Some analysts estimate that the blocks on offer need a $10 to $20 dollars per barrel fee to be viable, up to ten times the $2 dollars per barrel costs bravely accepted by BP for development in the Rumaila oilfield in the first round."
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