Home
An international center successfully questioned the fourth round of oil licenses in Iraq
16/02/2012 7:46
London / agencies
Confirmed the International Center for Development Studies, based in London, that the Iraqi government is facing a wave of recent withdrawals of foreign oil companies from contracting with them for the benefit of new contracts with the Kurdistan region. The Center said that it raises doubts about the success of the fourth round of oil licensing by the Iraqi government plans to launch the end of next May of this year 2012.
And the International Center for Development Studies that while the Iraqi government is counting on increasing the size of its oil revenues and development of 12 exploration blocks for oil and gas, announces many of the investing companies in the fields of southern Iraq for fear of not being able to achieve sufficient profits to cover costs. The contractual terms imposed by Baghdad on the oil companies invested in these fields reduces the profit margin and increase the size of the risk of return down. Price quoted, which ranges between the dollar and two dollars as a return on the barrel is not encouraging for these companies as compared to what you get with the development of the fields in the Kurdistan region in addition to factor the stability of the region and the facilities provided to investors there.
Center and explained that what happened previously with the Norwegian companies Statoil and Lukoil was part of a series of withdrawals by the major oil companies, the giant of its contracts with the Iraqi government.
These companies have expressed their desire to get out of their share in the second phase to develop the West Qurna fields, especially that the two companies Jabhta great difficulties in covering their costs up to yield (1.15 dollars) per barrel.
As well as it was for each of the two China's Sinopec and the American Teen Hess Vdilta investment in existing fields in Kurdistan, to enter into contracts with tough conditions with the Iraqi government.
As for the company and Exxon Mobil, the U.S. has resulted in its decision to invest in the Kurdistan region to the unresolved crisis between the Iraqi government and the Government of the Territory and the threat to prevent the company from investing in southern Iraq.
And recently announced that the French oil company Total, it will join the international oil companies that are considering investment in the Kurdistan region, rather than oil fields in southern Iraq, and in spite of the shares of the coalition's Total (PetroChina), which won contracts to develop the field in Maysan province Lhalfalla .
And through the International Center for Development Studies for fear that the result of conditions imposed by the Iraqi government in its contract with foreign companies and the pricing policy wrong and determine the shares of the company to further withdrawals and thus the inability of Iraq to increase oil production to 3.4 million barrels per day planned for the year 2012, as well as increasing its oil exports to 2.6 million barrels a day.
He and the International Center for Development Studies that Iraqi government's decision to punish companies contracting with the Government of the Kurdistan region of a wrong decision that it gives the impression of insulting to the Iraqi economy and sends the signals are not encouraging for companies wishing to invest, especially those operating in the Iraqi oil market and confuse their plans. Many companies find themselves forced to sell their shares in the Kurdistan region to be able to enter into contracts with the Iraqi government. As happened recently with the company (SK Innovation), South Korea, which sold its stake in one of the oil fields in the Kurdistan region of the Korean National Oil Company CNOOC banned by the Iraqi government.
Center fear that this hardline policy of the Iraqi government and withdrawals repeated oil companies of their contracts with the Iraqi government and directed to the Kurdistan region to a new wave of political dispute between the Baghdad and Kurdistan, especially prior to the national dialogue of the political blocs in Iraq. He also asked the International Center for Development Studies Iraqi government need to speed up the enactment of the law of oil and gas to avoid the chaos and economic struggle that often reflected the political stability and security in Iraq.
[You must be registered and logged in to see this link.]
