A senior official from the Iraqi Petroleum Contracts and Licensing Directorate (“PCLD”) has confirmed that the Nasiriya Oil Field will be auctioned on 19 December 2013.* The announcement took place at a workshop held in Amman, Jordan.

A total of 52 IOCs have been qualified for this Special Licensing Round with five more awaiting the outcome of the qualification process. Recent qualifiers announced by the PCLD in March include:

  • Zarubezhneft - Russia
  • CNPC - China
  • Brown Energy - US
  • Reliance Industries - India
  • Lukoil - Russia
  • Total – France (Total will be allowed to invest in the refinery but not to participate in the Nasiriya field until all KRG contracts are cancelled)
  • GC and Tonen General - Japan

The Nasiriya Oil FieldIntegrated Project will consist of the development of the 4 billion barrel Nasiriya oil field in Thi-Qar province and construction of a 300,000 bpd refinery. During the workshop, PCLD briefed a number of companies that terms and conditions of the project will be different to those used for Technical Service Contracts awarded previously.

The changes to the terms and conditions could include:

  • Investor costs.
  • Remuneration fee is subject to change.
  • Share of project revenues will be offered on commencement of production.
  • Recovery costs will be payable from the date of commencement of work. (This differs from the previous requirement to increase production and reach an agreed Plateau Production Target under the Technical Service Contracts.)
  • Taxes on profits from the project are fixed at 35%.