Iraq bumps up the date for awarding fresh contracts to April 15

Men work for Iraqi Drilling Company at Rumaila oilfield in Basra, Iraq,

Essam Al-Sudani | Reuters

Men work for Iraqi Drilling Company at Rumaila oilfield in Basra, Iraq,

Iraq plans to award oil in addition to also gas exploration in addition to also development contracts in 11 fresh blocks on April 15, oil ministry spokesman Asim Jihad said on Sunday.

Iraq had initially set June 21 as the date to open the bids for the fresh blocks, located in border areas with Iran in addition to also Kuwait, in addition to also in offshore Gulf waters.

Bidding documents will be made available to oil companies planning to make offers on April 13, Jihad told Reuters. The offers will have to be submitted on April 15 in addition to also the winners will be announced the same day, he added.

The oil ministry announced on Thursday measures to reduce the fees received by the oil companies through the government from the fresh contracts.

The fresh contracts will exclude oil by-products through the companies’ revenues, establish a linkage between prevailing oil prices in addition to also their remuneration, in addition to also introduce a royalty element.

Oil producers in Iraq currently receive a fee through the government linked to production increases, which include crude in addition to also oil by-products such as liquefied petroleum gas in addition to also dry gas.

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