ID :
68564
Wed, 07/01/2009 - 12:21
Auther :
Shortlink :
https://oananews.org//node/68564
The shortlink copeid
LEAD: BP, CNPC win Iraqi Rumaila oil field development deal+
CAIRO, June 30 Kyodo - BP plc of Britain and China National Petroleum Corp. have won a contract for the development of the Rumaila oil field in southern Iraq, the first of eight giant Iraqi oil and gas development projects for which Iraq invited bids Tuesday, Iraqi officials said.
Japan Petroleum Exploration Co. teamed up with CNPC for the right to develop an
oil field in the south, but they failed to win the auction due to disagreements
over conditions for the project, the officials said.
A Japanese company official said the bid was unsuccessful because Iraq asked
the companies for concessions in financial and other terms.
The Rumaila oil field was the only one among the eight projects that found a
winner Tuesday as selected foreign companies including international oil majors
and Japanese companies made bids, the Iraqi officials said.
Iraq is offering contracts to foreign companies for the first time in around 40
years since its energy industry was nationalized. The eight projects involve
six active oil fields, including those in Rumaila and Kirkuk, and two
undeveloped gas fields.
Iraq possesses the world's third-largest proven crude oil reserves of 115
billion barrels and the six oil fields account for roughly one-third.
Iraq plans to boost crude oil production from 2.4 million barrels per day in
2008 to 4 million barrels in 2013 by introducing foreign capital and technology
through the auction in order to secure funds to reconstruct the country.
Besides BP and CNPC, the companies selected to participate in the auctions
include Exxon Mobil Corp. of the United States as well as Japan's Nippon Oil
Corp., Inpex Corp. and Mitsubishi Corp.
The auctions were initially slated for Monday and Tuesday but were delayed
because of a heavy sandstorm.
Analysts warn there are risks associated with the contracts such as the poor
security situation and inadequate legal system in the country, as well as
domestic resistance to the opening of oil and gas fields to foreign companies.
Iraq plans to auction contracts for 11 untapped oil fields at the end of this
year.
Japan Petroleum Exploration Co. teamed up with CNPC for the right to develop an
oil field in the south, but they failed to win the auction due to disagreements
over conditions for the project, the officials said.
A Japanese company official said the bid was unsuccessful because Iraq asked
the companies for concessions in financial and other terms.
The Rumaila oil field was the only one among the eight projects that found a
winner Tuesday as selected foreign companies including international oil majors
and Japanese companies made bids, the Iraqi officials said.
Iraq is offering contracts to foreign companies for the first time in around 40
years since its energy industry was nationalized. The eight projects involve
six active oil fields, including those in Rumaila and Kirkuk, and two
undeveloped gas fields.
Iraq possesses the world's third-largest proven crude oil reserves of 115
billion barrels and the six oil fields account for roughly one-third.
Iraq plans to boost crude oil production from 2.4 million barrels per day in
2008 to 4 million barrels in 2013 by introducing foreign capital and technology
through the auction in order to secure funds to reconstruct the country.
Besides BP and CNPC, the companies selected to participate in the auctions
include Exxon Mobil Corp. of the United States as well as Japan's Nippon Oil
Corp., Inpex Corp. and Mitsubishi Corp.
The auctions were initially slated for Monday and Tuesday but were delayed
because of a heavy sandstorm.
Analysts warn there are risks associated with the contracts such as the poor
security situation and inadequate legal system in the country, as well as
domestic resistance to the opening of oil and gas fields to foreign companies.
Iraq plans to auction contracts for 11 untapped oil fields at the end of this
year.
