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U.S. agency: important amendments to the oil contracts for the next licensing round
On: Wednesday 22/2/2012 7:36
Baghdad / term follow-up
U.S. press sources revealed that Iraq had important amendments to the oil contracts in the fourth licensing round is expected to take place in May next, and pointed out that these amendments provide for global companies to obtain significant concessions, including 100% of the share of projects,
As well as compensation for any delay caused by the government. The agency said, "Dow Jones" CNN that Iraq put important amendments to some articles of technical service contracts in force for 20 years with international companies that seek to explore for oil and gas in 12 sites potentially listed by the Ministry of Oil in the licensing round, the fourth to be held in May next .
agency said that according to the new contract, will be the share of global companies 100% of the projects, none against the state companies, after the contract was shared quota of 75% for the first and 25% for the second.
are expected to contribute to this step in the compensation costs incurred by those companies more quickly, especially as it will have a greater share of oil and gas fields discovered and produced to pay dues, according to the agency.
agency attributed the cause of making modifications to the concern of oil and gas companies on the risk and the signing of contracts for investment versus return shortly, as well as to express a number of other, with two companies Total French and Exxon Mobil, U.S. interest in the field of prospecting for oil in fields located north of the country in the territory of Kurdistan, which the semi-autonomous, rather than from the fields of the center and the south controlled by the central government.
, the agency said the Oil Ministry will hold a meeting next March in Istanbul, Turkey with Msthartaha, the two companies into British Gaffney and Klein and their partners, to finalize the contract before it was delivered in April to international companies that will participate in the licensing round four.
The agency noted that the ministry amended the clause allowed it to postpone the development of the fields up to seven years from the date of the announcement of exploration, after that was criticized by the applicants bidding.
The agency said the new item allows companies contracting the right to compensation for the costs of exploration and speculation in the event of the ministry decided to suspend work in the oil fields, as well as to get 3% of its oil revenues as interest for each year was postponed work there, and 5 % of any other costs related to the removal of mines and building roads, etc., for each year as well.
were 9 companies out of 46 withdrew from the licensing round, the fourth for the development of 12 oil fields is expected to take place in May next, where it is believed specialists that seven of them contain natural gas, and five other crude oil.
It is expected to add round about 10 billion barrels of crude oil and about 29 trillion cubic feet of gas reserves of Iraq.
has been postponed round twice against the backdrop of the controversy that took place on whether it should be decades before the sharing basis production, which is supported by companies offering unexplored, or fixed-price contracts supported by the government.
It is noteworthy that the model of a fixed-price contract identifying the work is complete and all costs in advance.
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