Iraq expects tough competition in second auction
Iraq confident major oil companies will submit competitive offers
Iraq’s Oil Minister has said he expects fierce competition between international oil companies in the second round of bidding on the country’s oil fields.
The first auction was largely unsuccessful after the majority of companies rejected the price set by Iraq for each barrel produced.
“We expect the world's biggest oil companies to come and submit their offers ... good competitive offers," Oil Minister Hussain al-Shahristani told reporters.
A total of 45 international companies, including the likes of ExxonMobil, Chevron and BP, have been cleared to compete for the right to develop the 15 oilfields on offer.
Al-Shahristani added that the fees involved in the second round of bidding will be studied carefully in order to reach a fair price for development.
Only one deal was struck in the first round, with BP and its partner CNPC of China securing Iraq’s biggest oilfield, the Rumaila field.