New Oil & Gas Contracts in Iraq will be awarded on 15th April

On Sunday, the spokesman of Iraqi oil ministry Aasim Jihad issued a statement that Iraq has scheduled 15th April to allocate contracts regarding oil and gas exploration and development for 11 new blocks. The Iraqi government had set the date of 21 June to open bids for new blocks. Point to be noted that these new blocks are located in border areas with Kuwait and Iran. Jihad said in a press interview that the documents regarding bidding will be available on 13th April to oil companies in order to officially submit their offers. He added that entire bidding offers will be submitted on 15th April and bidding winners will be announced the same day. It is important that Iraqi oil ministry announced on Thursday that Iraqi government has adopted some specific measures in reducing the fees received by the oil companies in the new contracts. The new contracts will reject oil by-products from the revenues of companies.

New Oil & Gas contracts

These new contracts will remove oil by-products from the revenues of these companies. It would establish a connection between dominant oil prices and their recompense, and introduce a distinction element. Oil producers in Iraq are currently receiving a fee from the Iraqi government connected to an increase in production. It includes crude and oil by-products such as liquefied petroleum gas and dry gas. Iraq is the second largest oil producer after Saudi Arabia in OPEC. Now, Iraq has decided to change the contracts after a surplus caused oil prices to crash during the year 2014. it badly reduced and degraded a significant amount of ability of Baghdad to pay the fees. Companies including Exxon Mobil, BP, Exxon Mobil, Total and Royal Dutch Shell helped Iraq in increasing its production level during the past decade by more than 2.5 million barrels per day to about 4.7 million barrels per day.

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