Sold: the Rumaila field, in Iraq's south
ExxonMobil bids high for Rumaila prize
US supermajor ExxonMobil and Malaysian state-run producer Petronas have put in the highest bid for the super giant Rumaila oilfield in Baghdad's first bid round since the 2003 US-led invasion.
A source in Baghdad told UpstreamOnline that UK supermajor BP and China National Petroleum Corporation also bid for the field, which has reserves of 17 billion barrels.
ExxonMobil and Petronas offered 3.1 million barrels per year over seven years, pegging production costs at $4.80 per barrel, the source said.
However, the Iraq's Oil Ministry delayed deciding between the two consortia, saying the offers exceeded the per barrel fee it was prepared to pay.
The auction is being run as a "closed envelope" round, with 33 international players vying for the six oilfields and two gas fields up for grabs.
Rumaila, in Iraq's southern oil patch, was the first field put up for auction this morning.
The 4-billion barrel Zubair oilfield saw interest from four different consortiums.
One group was led by BP, together with China's CNPC, another by India's ONGC with Gazprom of Russia and Turkish Petroleum Corporation.
The third was headed by Italy's ENI, with China's Sinopec, Occidental and Korean Gas, and the final was led by ExxonMobil, with Shell and Malaysia's Petronas.
Meanwhile, Iraq failed to auction off contracts to develop its Bai Hassan and Maysan oilfields after US and Chinese-led consortia rejected its terms, Oil Minister Hussain al-Shahristani said.
China's CNOOC and Sinochem were the sole bidder for the 2.5 billion barrel Maysan oilfield complex but demanded a much higher fee for every extra barrel of oil produced than Iraq's Oil Ministry was willing to pay.
Likewise, a ConocoPhillips-led consortium was the only bidder for the 2.3 billion barrel Bai Hassan field, but again it asked for a much higher fee than the one proposed by Iraq in its contract terms.
The Kirkuk oilfield, which lies in a region contested by minority Kurds and the Arab-led government in Baghdad, received only bid.
The one bidding consortium was led by Shell , with China's Sinopec and the Turkish Petroleum Corporation.
The Oil Ministry received no offers for the 3.3 trillion cubic feet Mansuriyah gas field.
Earlier, Iraq's Oil Minister Hussain Shahristani said the round would help boost the country's output from its current level of about 2.4 million barrels per day to more than 4 million bpd.
Instead of sealing production sharing contracts - which are more attractive for producers as such deals give them a share of profits and allow them to book reserves - players are bidding on 20-year service contracts and will be paid a flat fee for their services.
More to come.