PPL wins gas block in Iraq- Oil and gas news Pakistan

Iraq
on Thursday opened the last day of the landmark sale of units awarded two exploration contracts, is better than a poor start that dampened hopes of cementing its role as a major global supplier.

The
final two days of the sale, the first to invite international oil companies to explore the territory of Iraq’s energy fields with the US-led invasion in 2003, open to the ministry of oil transfer proposals to the central and southern Iraq, Pakistan Petroleum
and Lukoil of Russia, respectively.

In general, six blocks were to be offered on Thursday,
5 thought to gas and oil are not believed to carry out, including two that were originally proposed by the previous day.

The
rate of the round, the fourth public auction of Iraqi power contracts since mid-2009, against the background of progress in increasing oil exports, which accounted for the vast majority of government revenue, and, as Baghdad’s eyes above the gas production
will rise to a completely inadequate diet.

But
while the previous auctions offer contracts to foreign energy companies to increase production at existing oil and gas fields in Iraq at this time showed areas for research.

Thursday
opened a quotation from Pakistan Petroleum for the 6,000 square kilometer exploration block which is believed to contain gas covering the provinces of Diyala and Wasit in central Iraq, with the company agreeing to a $ 5.38 per barrel of oil equivalent, eventually
recovered.

And
shortly thereafter, the partnership between the Russian energy giant Lukoil and Inpex of Japan won the contract to cover part of Muthanna and Dhi Qar provinces in the south, said the holding of oil, with the offer of $ 5.99 per barrel of oil.

Of the three oil and gas from
three blocks offered on Wednesday, but received only two proposals, only a 9-Block, the area near the border of Iraq with Iran, which is believed to contain oil was taken Baghdad.

A consortium led by Kuwait Energy,
which also includes Turkey and TPAO Dubai Dragon Oil has 900 square kilometers of the blocks in the southern province of Basra for a service at a rate of $ 6.24 per barrel of oil.

Other research unit in southern Iraq, thought to contain oil received
a single proposal, but it did not meet the price of the oil ministry, and so was not awarded.

"I think
what was expected, and this is certainly a disappointment for the oil ministry, but it should give them a reason to reconsider the conditions that they offer, and the model of" Ruba Husari, an analyst and editor www.iraqoilforum.
whom the site, said on the first day of the auction.

"Exploration is too risky, and no one was going to bid big money on something that is not
even guaranteed to provide a profit margin."

Responding to a question
on Wednesday, which caused a lack of interest from companies, Amid said: "Our estimates do not allow us (offer rewards), which we believe could damage the national interest.
Estimates of the two sides do not agree, as a result of lack of interest from companies, "he said.

As
with previous auctions, Iraq needs foreign companies that agree to explore components for use in fixed-price contracts for services rather than production-sharing agreements, which are common elsewhere and more popular with major energy companies.

Baghdad
is also now mandatory that firms that win contracts agree not to enter into contracts with the Kurdish autonomous region in northern Iraq, or any other sub-national authorities, without the approval of the central government.

Kurdistan signed dozens of contracts with foreign energy companies,
but Baghdad considers them illegal because they were not approved by the Federal Ministry of Petroleum.

Iraq hopes to increase its exports from the current level of about 2.5 million barrels per day.

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