Iraq’s oil ministry on 14 August signed preliminary contracts for upstream development awards made during Licensing Round 5+ (LR5+) and Licensing Round 6 (LR6) earlier this year (MEES, 17 May). The ministry’s Petroleum Contracts and Licensing Directorate (PCLD) held an “initial signing ceremony,” implying that the next stage will be contract negotiations, where winning firms attempt to change some terms before a final signature. Final contracts will eventually have to be ratified by the cabinet.
The round was dominated by Chinese firms, with state firms Sinopec and CNOOC and a raft of small independents secured assets. Iraqi-Kurdish conglomerate Kar was the only non-Chinese firm, winning three blocks. Oil Minister Hayan Abdulghani hopes that development of the 13 awarded blocks will add 750,000 b/d and 850mn cfd to production. (CONTINUED - 125 WORDS)