Iraq has announced details of the oil and gas blocks on offer and contract terms in its latest licensing round.

The deadline for companies to submit bids is 15 April and the round includes 11 blocks near Iraq’s borders with Iran, Iraq and Kuwait.

The bid deadline is sooner than was previously expected. Originally the bid deadline was scheduled for 7 May.

Analysts believe that it has been moved forward to allow for contract awards before upcoming elections.

There is some concern that international oil companies (IOCs) will not have as much time to analyse the blocks before they place bids.

The blocks on offer are:

• Gilabat - Qumar
• Khashim Al-Ahmer - Injana
• Naft Khana Block
• Zurbatiya Block
• Shihabi Block
• Huwaiza Block
• Sindbad Block
• Fao Block
• Arabian Gulf Block
• Jebal Sanam Block
• Khidher Mai Block

Under the terms of the terms of the agreement Iraq will exclude oil by-products from foreign oil companies’ revenues in new contracts expected to be awarded in June, according to Abdul Mahdi al-Ameedi, head of the ministry’s licensing and contracts office.

By-products include liquefied petroleum gas and dry gas.

This is likely to reduce the production fees IOCs receive from the government.

Al-Ameedi also said that cost recovery will be linked to oil prices.

There have been numerous signs of discontent with the contract terms offered to IOCs by Baghdad over recent months.

Last year Shell announced that it would be exiting Iraq’s Majnoon field, one of the world’s largest oil fields.

Under current plans, responsibility for the Majnoon oil field development project will be handed over to the state-owned Basra Oil Company in June this year.

Analysts say Shell wants to exit the Majnoon scheme due to the onerous terms of the technical service contract it signed with Baghdad, which gives little return on investment.

Other companies operating in Iraq are also dissatisfied with the contracts they signed with Baghdad and are engaging in drawn out negotiations as they put pressure on the government for more generous terms.

These companies include Russia’s Lukoil, UK-listed BP, US-based Exxon Mobil and Italy’s Eni.