Iraq's oil ministry launched a new round of bidding on Monday to develop 12 oil fields and announced it would directly negotiate terms with oil companies.
According to the ministry, the new invitation to tender allows oil companies to 'submit their own proposals for contractual, commercial and financial terms and conditions,' indicating a clear shift from the service-based contracts the country agreed for the development of its fields.
The 12 fields on offer are based in three Iraqi provinces: four in Basra, five in Misan and three in the Central province, according to the tender document on the ministry's website.
The ministry has pre-qualified 19 companies for the round. These are the UAE's Dragon Oil, Mubadala Oil, and Crescent Petroleum, Glencore Exploration Ltd, six Japanese firms, as well as firms from China, Russia, Italy, Kuwait, Indonesia, Vietnam, Thailand and Romania.
Under the service contracts used for Baghdad's post-2003 bidding rounds, the government pays a fixed fee for every barrel of oil produced.
The Iraqi oil ministry has been seeking to renegotiate the terms of the contracts with international oil companies since oil prices plunged two years ago. It said it wishes to link the fees to oil prices and have the companies share the burden when the markets go down.
News of the tender came as Iraq signaled it was seeking an exemption from the OPEC production cut deal negotiated last month.
By Sibel Akbay
Anadolu Agency
sibel.akbay@aa.com.tr