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)

 

Field Consortiums Target 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 $1.39 175,000 150
 

Total (France) (57%)

CNPC (China) (43%)

1,405 $1.75 175,000  
           
Halfaya

CNPC (50%) (Operator)

Petronas (25%)

Total (France) (25%)

535 $1.40 70,000 150
 

Statoil (Norway) (50%) (Operator)

Lukoil (Russia) (50%)

600 $1.53 70,000  
 

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

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

Oil India (India) (20%)

550 $1.76 70,000  
 

Eni (Italy) (30%) (Operator)

Songanol (Angola) (15%)

CNOOC (China) (15%)

Kogas (South Korea) (20%)

Occidental (US) (20%)

400 $12.90 70,000  
           
Qaiyarah Songanol (100%) (Operator) 120 $5.00 ($12.50) 30,000 100
           
West Qurna

Lukoil (85%) (Operator)

Statoil (15%)

1,800 $1.15 120,000 150
 

Petronas (60%) (Operator)

Pertamina (Indonesia) (20%)

PetroVietnam (Vietnam) (20%)

1,200 $1.25 120,000  
  Total (100%) 1,430 $1.72 120,000  
 

BP (UK) (51%) (Operator)

CNPC (49%)

888 $1.65 120,000  
           
Garraf

Petronas (60%) (Operator)

Japex (Japan) (40%)

230 $1.49 35,000 100
 

KazMunaiGaz (Kazakhstan) (45%) (Operator)

KoGas (45%)

Edison (US) (10%)

185 $2.55 35,000  
 

Tpao (60%) (Operator)

ONGC (40%)

200 $2.76 35,000  
  Pertamina (100%) (Operator) 150 $7.50 35,000  
           
Badra

Gazprom (40%) (Operator)

Tpao (10%)

Kogas (30%)

Petronas (20%)

170 $5.50 ($6.00) 15,000 100
           
Najmah Songanol (100%) 110 $6.00 ($8.50) 20,000 100
           
East Baghdad(Central & North) No bidders n/a n/a n/a  
           
Eastern Fields (Gilabat, Khashem, Al-Ahmar, Nau Doman, Qumar) No bidders n/a n/a n/a  
           
Middle Furat (Kifl, West Kifl, Merjan) No bidders n/a n/a n/a n/a

 Source: Iraq Ministry of Oil