Home
Iraq has awarded Russia's Bashneft rights to develop the country's oil block 12, an oil official said on Thursday.
The company won the bid after initial negotiations broke down in May, Sabah Abdul-Kadhim, head of the legal sector at Iraq's petroleum and contracts licensing directorate, told Reuters.
"We have awarded Bashneft oil block 12 today after it accepted the oil ministry's remuneration fee of $5 per barrel of oil equivalent, with other conditions," Kadhim said.
OPEC-member Iraq holds the world's fourth-largest oil reserves and is expected to be a major source of future oil supplies.
Last month, a group led by UK-based Premier Oil with Bashneft and Petro Vietnam rejected a government offer to develop block 12 in Iraq's 4th energy bidding round.
Kadhim said Bashneft had since approached the Iraqi oil ministry and said it accepted the original terms of the government offer without the two other companies.
Baghdad has signed a series of contracts with foreign oil companies that target total oil production capacity of 12 million barrels per day (bpd) by 2017, up from about 3 million bpd.
Most analysts see 6 million to 7 million bpd as a more realistic goal.
[You must be registered and logged in to see this link.]
The company won the bid after initial negotiations broke down in May, Sabah Abdul-Kadhim, head of the legal sector at Iraq's petroleum and contracts licensing directorate, told Reuters.
"We have awarded Bashneft oil block 12 today after it accepted the oil ministry's remuneration fee of $5 per barrel of oil equivalent, with other conditions," Kadhim said.
OPEC-member Iraq holds the world's fourth-largest oil reserves and is expected to be a major source of future oil supplies.
Last month, a group led by UK-based Premier Oil with Bashneft and Petro Vietnam rejected a government offer to develop block 12 in Iraq's 4th energy bidding round.
Kadhim said Bashneft had since approached the Iraqi oil ministry and said it accepted the original terms of the government offer without the two other companies.
Baghdad has signed a series of contracts with foreign oil companies that target total oil production capacity of 12 million barrels per day (bpd) by 2017, up from about 3 million bpd.
Most analysts see 6 million to 7 million bpd as a more realistic goal.
[You must be registered and logged in to see this link.]
