Iraq second licensing round breakdown

13 December 2009

Production deals deals to boost oil production by 4.7 million barrels a day by 2016

Iraq’s second oil and gas exploration and production licensing round in 30 years has yielded seven licence awards to international oil companies as Baghdad seeks to boost oil production in the country by 4.7 million barrels a day 2016.

The international auction for 20-year production licences took place in Baghdad on 11 and 12 December and netted the government an $850m windfall in sign-up fees.

Iraq Oil Minister Hussein al-Shahristani opened bids from 15 bidding groups that included major international oil companies (IOCs), such as the UK’s BP and France’s Total, as well as five national oil companies (NOCs), including Angola’s Songanol, before entering into direct negotiationson the details of each deal.

Bids were judged on two key criteria: Their proposed peak production level, covering the maximum amount of oil to be produced over a 7-13 year period; And how much each consortium wanted to charge Baghdad for every barrel of oil above a set target.

Iraq: Second Bid Round (11-12 December 2009)

 

FieldConsortiumsTarget Production (1,000/ barrels a day)Remuneration Fee ($/barrel)Minimum Production for Remuneration (barrels a day)Sign-On Fee ($m)
Manjoon

Shell (UK) (60%) (Operator)

Petronas (Malaysia) (40 %)

1,800$1.39175,000150
 

Total (France) (57%)

CNPC (China) (43%)

1,405$1.75175,000 
      
Halfaya

CNPC (50%) (Operator)

Petronas (25%)

Total (France) (25%)

535$1.4070,000150
 

Statoil (Norway) (50%) (Operator)

Lukoil (Russia) (50%)

600$1.5370,000 
 

Oil & Natural Gas Company (ONGC) (Thailand) (50%) (Operator)

Turkish Petroleum (Tpao) (Turkey) (30%)

Oil India (India) (20%)

550$1.7670,000 
 

Eni (Italy) (30%) (Operator)

Songanol (Angola) (15%)

CNOOC (China) (15%)

Kogas (South Korea) (20%)

Occidental (US) (20%)

400$12.9070,000 
      
QaiyarahSonganol (100%) (Operator)120$5.00 ($12.50)30,000100
      
West Qurna

Lukoil (85%) (Operator)

Statoil (15%)

1,800$1.15120,000150
 

Petronas (60%) (Operator)

Pertamina (Indonesia) (20%)

PetroVietnam (Vietnam) (20%)

1,200$1.25120,000 
 Total (100%)1,430$1.72120,000 
 

BP (UK) (51%) (Operator)

CNPC (49%)

888$1.65120,000 
      
Garraf

Petronas (60%) (Operator)

Japex (Japan) (40%)

230$1.4935,000100
 

KazMunaiGaz (Kazakhstan) (45%) (Operator)

KoGas (45%)

Edison (US) (10%)

185$2.5535,000 
 

Tpao (60%) (Operator)

ONGC (40%)

200$2.7635,000 
 Pertamina (100%) (Operator)150$7.5035,000 
      
Badra

Gazprom (40%) (Operator)

Tpao (10%)

Kogas (30%)

Petronas (20%)

170$5.50 ($6.00)15,000100
      
NajmahSonganol (100%)110$6.00 ($8.50)20,000100
      
East Baghdad(Central & North)No biddersn/an/an/a 
      
Eastern Fields (Gilabat, Khashem, Al-Ahmar, Nau Doman, Qumar)No biddersn/an/an/a 
      
Middle Furat (Kifl, West Kifl, Merjan)No biddersn/an/an/an/a

 Source: Iraq Ministry of Oil

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