Third round will be organised to share fabulous Iraqi oil's treasure exploitation

IRAQ’S oil ministry has told the media that it will hold a third round of auctions for the development of gas fields in the country. The Wall Street Journal reports that Abdul Mahdy al-Ameedi, director-general of the ministry's petroleum contracts and licensing directorate, said that the ministry will invite 15 companies to bid for 20-year service contracts at three gas fields, Akkas, Mansouriya and Siba, recently discovered but as yet undeveloped. He would not name the companies which will be invited to bid but Reuters reports that Sabah Abdul Kadhim, head of the directorate said that Shell, Total and KOGAS would be “top of the list”.

Al-Ameedi said that the auction is expected to be completed by the end of 2010 and that extra gas is desperately needed for its power stations, which are currently producing only half of Iraq’s necessary power. Akkas and Mansouriya were part of the first round of auctions and while Akkas received one unsuccessful bid, Mansouriya received no bids. The Siba gas field was removed from the second round of auctions in 2009.

The second round, to develop Iraq’s oil fields, concluded in November 2009, with companies including Gazprom, Shell, Sonangol and Petronas amongst the successful bidders. In January, the European Union signed a deal to develop some of Iraq’s gas fields.

Author: Helen Tunnicliffe