Iraq relaxes oil licence terms

25 August 2009

Companies baulked at ministry’s tough bargaining stance in first bidding round

Iraq has relaxed some of the conditions governing oil majors bidding for fields in its second oil licence round after achieving poor results in its first bid round held in June.

An oil ministry spokesman says firms that are registered to compete, can now participate in up to four bids compared with a maximum of two in the first licensing round.

About 45 companies are attending a roadshow in Istanbul on 25 August to discuss the initial terms of the round.

The oil ministry has set a bid deadline in early December.

In June’s first licensing round, the ministry awarded just one licence to the UK’s BP as companies baulked at Baghdad’s tough bargaining stance (MEED 30:6:09).

In the second round, the ministry’s Petroleum Contracts & Licensing Directorate is offering licences covering 10 oil and gas fields which have yet to be developed.

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