Ratification deadline of August 15 for Iraq oil awards extended
Iraq's oil ministry has made last minute changes to the schedule of
awarding long term service contracts to foreign oil companies and will not
announce the winning bidders immediately at the open bidding ceremony due to
take place Tuesday, oil ministry sources said Monday.
The sources said the ministry's licensing department will only announce
the names of the bidders and a "score card" of their bidding parameters. The
bids themselves will be submitted to the Iraqi cabinet for approval.
The ministry had initially said that it would open the sealed bids for
the eight oil and gas fields on offer in its first bid round on Tuesday--a day
later than anticipated due to a sandstorm that enveloped Baghdad Sunday--and
announce the winners immediately based on an agreed formula.
The cabinet may refer the contracts for approval by the parliament if it
deems this as necessary, marking another new element in the process. As a result, the August 15 deadline for contract ratification by the
council of ministers has been pushed back indefinitely, senior sources
close to the licensing department said.
"The winner will not be declared by the score of each bidder and the name
of the bidder will be declared," said one source.
The formula to determine the winning bid has also been changed whereby
the ministry will give more weight to the incremental production rather than
the remuneration fee submitted by each of the bidding companies, the sources
--Faleh al-Khayat, email@example.com
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