U.S. agency: Iraq oil contracts amended grant privileges including large internationa
U.S. agency: Iraq oil contracts amended grant privileges including large international companies
20.2.2012 | (Voice of Iraq) - Add Comment - Sumerian News / Baghdad revealed the U.S. Agency for Financial News, Monday, that Iraq made important amendments to the oil contracts in the fourth licensing round is expected to take place in May next, and pointed out that these amendments allow for international companies to obtain large concessions, including 100% of the share of projects, as well as compensation for any delay caused by the government. agency said, "Dow Jones," The Iraq situation of important amendments to some articles of technical service contracts in force for 20 years with international companies which seeks to explore for oil and gas in 12 sites potentially listed by the Ministry of Oil in the licensing round, the fourth to be held in May next. The agency said that according to the new contract, will be the share of global companies 100% of the projects, none against corporate Iraqi government, after it was nodes share the quota of 75% for the first and 25% for the second. It is expected that this step will contribute to offset costs incurred by those companies more quickly, especially as it will have a greater share of oil and gas fields discovered and produced to pay dues, according to the agency. agency attributed the cause of modifications to the concern of oil and gas companies on the risk and the signing of contracts for investment versus return shortly, as well as to express a number of other, including oil giant Total of France and Exxon Mobil, U.S. interest in the field of prospecting for oil in fields located north of the country in the territory of Kurdistan, which the semi-autonomous, rather than fields, the center and south controlled by the central government. , the agency said the Iraqi Oil Ministry will hold a meeting next March in Istanbul, Turkey with Msthartaha, the two companies into British Gaffney and Klein and their partners, to finalize the contract before it was delivered in April to international companies that will participate in the licensing round the fourth. The agency noted that the ministry amended the clause allowed it to postpone the development of the fields up to seven years from the date of the announcement of exploration, having faced criticism by the applicants bidding. The agency said the new item allows companies contracting the right to compensation for the costs of exploration and speculation in the event of the ministry decided to suspended in the oil fields, as well as access to 3% of its oil revenues as interest for each year was postponed work there, and 5% of any other costs related to the removal of mines and building roads, etc., for each year as well. were 9 companies out of 46 withdrew from the licensing round, the fourth for the development of 12 oil fields is expected to take place in May next, where it is believed specialists that seven of them contain natural gas, and the other five on the crude oil. It is expected to add round about 10 billion barrels of crude oil and about 29 trillion cubic feet of gas to Iraq's oil reserves. has been postponed twice round on the back of the controversy that took place on whether the contracts should be raised on the basis of production sharing, subtraction, backed by companies explored, fixed price contracts or government-supported. It is noteworthy that the model of a fixed-price contract is identifying the work complete and all costs in advance.