Iraq round show of no hands

Empty seats: representatives of international oil companies at the first day of round bidding in Baghdad on Wednesday

REUTERS/SCANPIX

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News Wires

 30 May 2012 13:49 GMT

Iraq awarded only one out of six new oil and gas blocks to foreign companies on Wednesday in the first day of bidding in its fourth licensing round as oil companies were turned off by tough contract terms, according to a report.

Foreign players made no offers on four oil and gas blocks and a group led by UK-based Premier Oil rejected a government offer on the fee for a fifth block, scuttling an agreement there, Reuters reported.

The only tract to be awarded was Block 9, a mainly oil area in southern Basra province, which was secured by a consortium led by Kuwait Energy and partners Turkey's TPAO and Dubai-based Dragon Oil.

Officials and executives said economics of service contracts on offer, especially on gas deals, kept companies away.

“We believe the contracts.. serve the interests of…

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