Abu Dhabi's Mubadala Oil and Gas and Dragon Oil of Dubai are among 47 companies set to compete for 12 blocks in Iraq's first auction of undeveloped oilfields since United States troops left the country in December.
Many countries offer such exploration contracts on a production-sharing basis, which motivates companies to make big finds and allows them to book the reserves.
But Baghdad, which says such agreements violate the 2005 constitution, is offering service contracts that pay a set fee per barrel - which some oil executives say is not enough of an inducement.
No comments:
Post a Comment