Iraq’s oil fields auctioned off
Baghdad (AsiaNews / Agencies) - A consortium formed by Russian Lukoil and Norway's Statoil has taken home the most appetising slice of Iraq’s oil wells up for auction. They obtained the concession for the "super field" of the West Qurna 2. The news was announced today by Iraqi Oil Minister Hussain al-Sharistani, the last day of the second round of oil tenders in Baghdad. The contract, which lasts six years, permits the two oil companies to produce 1,8 million barrels a day, at a price of $ 1.15 per barrel. The oil field of West Qurna 2 is one of the most important oil fields of Iraq, with reserves of 12.8 billion barrels.
Yesterday Shell landed another big share. Although substantially downsized. At the head of a consortium together with the Malaysian Petronas, the major Anglo-Dutch company won the contract for the southern oil fields of Majnoon, one of three so-called "super giants," offered in this second round. Estimated reserves: 12.6 billion barrels. Shell Malaysia and its partners are truly competitive, demanding only $ 1.39 per barrel for the remuneration fee - the fee for each barrel of crude oil produced above the established plateau. In return, they have pledged to bring the production of the deposit (now just 46 thousand barrels per day) to one million 800 thousand barrels, over 10 years. Almost double what they the Iraqis expected.
Among the fields included in the negotiations of the first day only one other was awarded: Halfaya, still in the south, but smaller more "modest" (reserves estimated at 4.1 billion barrels). The contract went to the Chinese CNPC, the leader of a consortium which included Malaysia's Petronas and France's Total, which have pledged to increase production from the current 3100 barrels per day until 535 thousand barrels, in a span of 13 years.
The auctions were conducted in a heavily fortified Ministry for Petroleum after the last bloody attacks in the capital. Up for grabs were 15 oil fields and ten contracts for the total value of 41.3 billion barrels.
Iraq could challenge Russia to second place among the major oil producers in the world, but up until now has not been able to reach agreements with major oil companies to exploit the wells in the most dangerous areas. The objective of the Baghdad government is to quadruple production to reach 10 million barrels per day in six or seven years. This result would lead the country to the levels of the Russian Federation and would leave Saudi Arabia in the first place with 12.5 million barrels a day.
.png)
