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Iraq's Zubair field draws 4 bids

Iraq's Zubair field draws 4 bids

Iraq's oil minister said Tuesday four groups of international oil firms have submitted bids to develop Iraq's 4.1 billion barrel Zubair oil field, while only one bid has been received for another cluster of three fields with over 2.6 billion in reserves.
Hussain al-Shahristani said that ONGC, which is teamed up with Russia's Gazprom Neft and the Turkish Petroleum Corp. secured the most votes for the Zubair field from the expert committee overseeing Iraq's landmark oil auction. The group has been asked to revise their offer.
Iraq is offering a total of six oil and two gas fields to international firms, a process that marks their return to the oil-rich nation over three decades after Saddam Hussein's nationalizing of the sector.
The companies are vying for 20-year service contracts that would pay them a fixed price per barrel for production in excess of a minimum target.
The ONGC-led consortium had submitted a bid seeking $9.9 per barrel in payments from Iraq, based on a target production of 525,000 barrels per day. That is roughly 125,000 barrels per day over the ministry's baseline level. Al-Shahristani said
The three other groups are a China's CNPC led consortium with BP, an Eni-led group including the U.S.'s Occidental Petroleum, China's Sinopec, and Korea Gas and the Exxon Mobil led consortium that includes Malaysia's Petronas and oil giant Shell.
The price they were seeking for excess production was less than half that requested by ONGC.
A separate Chinese-led consortium was the only bidder for the Missan fields _ three fields with combined reserves of about 2.6 billion barrels that were offered as one bloc.
CNOOC and Sinochem International set their bid at $21.4 per barrel, based on a target production of 450,000 barrels per day. That is roughly 150,000 barrels above the ministry's minimum production level.
The ministry set the price it is willing to pay at $2 for every barrel in excess of the baseline level.