Iraq Offers India Three Oilfields

By John Lee.

Iraq has offered three discovered oilfields to India "on a nomination basis" and agreed to renegotiate a contract pending since 2000, reports Telegraph India.

Oil Minister M Veerappa Moily told reporters that Iraq offered to give state-owned Indian firms the Kifil, West Kifil and Merjan oilfields in the Middle Furat region in central Iraq.

The fields, south of Al-Razaza Lake, have estimated reserves of 600 million barrels of oil.

He said the “fields are discovered and work can start immediately”.

This is the first time in the recent history that Iraq has offered fields on a nomination basis -- previously it had asked Indian firms to participate in competitive bidding.

Also, Iraq has agreed to renegotiate and conclude the contract for Block 8 with ONGC Videsh Ltd (OVL), the overseas arm of Oil and Natural Gas Corporation. The block, located in the western desert in southern Iraq bordering Saudi Arabia and Kuwait, was awarded to OVL in November 2000 by the then Saddam Hussein government. It is estimated to hold 645 million barrels of in-place reserves, of which 54 million are recoverable.

Moily said Iraq also agreed to consider investment in the upcoming 15-million-tonne refinery of Indian Oil Corporation (IOC) at Paradip in Odisha.

The Opec producer further committed itself to meeting the long-term requirement of crude oil of India and was willing to consider favourable commercial terms, including extending the interest free credit period from 30 to 60 days.

Iraq supplied 24.04 million tonnes of crude oil to India in 2012-13.

(Source: Telegraph India)

One Response to Iraq Offers India Three Oilfields

  1. Lorenzo 14th July 2013 at 16:27 #

    I firmly believe that Iraq should change the terms and conditions of the oil contracts in order to get the major oil companies to invest huuuuuge amount of money in the iraqui oil fields.

    The compound effect of briberies, lack of skilled personnel, bureaucracy and corruption at different layers of the society results in Iraq nt beeing attractive.

    Iraq need to have oil companies who are willing to invest and have a decent return in their investments and not as it is today that more or less all major oil companies reduces their production quotas and want to renegotiate the oil contracts.

    Exxon was the first one to say "enough is enough" and there are other places where we can have a decent return. Total followed Exxon and it is a matter of time until ENI, BP and Shell will do the same,

    What the Ministry of Oil needs is a more market friendly approach and leave the legacy of a socialist, baathist set of values in the Ministry.

    With no oil, no schools, no hospitals, no electricity, just no nothing