Iraq has further delayed its latest oil exploration bidding round amid signs it is improving the terms under which international oil companies (IOCs) operate.
The country has also refrained from disqualifying ExxonMobil in spite of its move into the Kurdistan region of northern Iraq against the wishes of Baghdad.
"We have made major changes and amendments on the initial contract that concern the economic and contractual terms and the result was a new model contract," Abdul Mahdy Al Ameedi, the director of the oil ministry contracts and licensing directorate, told Reuters.
The fourth bidding round is Iraq's first auction for exploration rights in three decades. It has been delayed several times, and is now scheduled to begin on May 30. The delay will help oil companies study changes made by the ministry of oil, according to Mr Al Ameedi.
"The changes and amendments on the exploration contract were mainly touching the pricing formula and profits of the companies, and how to determine their shares in the contract," he said.
International oil companies have long complained about the nature and the profitability of previous contracts.
The latest announcement could give hope to companies that terms will be amended in their favour.
"The [existing] technical service contracts are very tight, the Iraqis managed to squeeze companies quite heavily on the terms," said Sam Ciszuk, an analyst at the consultancy KBC Energy Economics.
"IOCs were still moving forward with this because of potential future opportunities. Now it seems like those opportunities look fairly unattractive and the Iraqis have seen that they need to do something about that."
The technical service contract model used to revive the giant fields in Iraq's south is not suited for exploration and production work, Mr Ciszuk said. Iraq's existing contracts pay producers only above a minimum production threshold.
The bidding round is for 12 new oil and gas exploration blocks that are expected to yield 29 trillion cubic feet of gas and 10 billion barrels of oil.
The government has qualified 46 energy companies to take part in the auction, of which 37 have expressed an interest in bidding.
ExxonMobil, which incurred the wrath of the central government by defying its implicit ban on developing reserves in the Kurdish autonomous region, is still one of the companies qualified for bidding.
The US company in November signed a contract with the Kurdish Regional Government to explore six blocks in the northern region. Baghdad's reaction culminated in a threat by an Iraqi oil official to remove Exxon from its concessions in the south.
Iraq's reluctance to act against Exxon is because of fears that would jeopardise the government's production targets, Mr Ciszuk said.
Exxon is developing the huge West Qurna 1 field near Basra, and also has the lead role in a desalination project that will provide water needed to enhance production in southern fields.
Punishing the company would also deter other international operators at a time when a fraught security situation and a long-standing deadlock in political decision-making is discouraging investment in the country.
"If you are going to enforce a tough line on Exxon you might see companies leaving," Mr Ciszuk said.
While production in Iraq has so far focused on oil, the coming bid rounds are expected to address the country's shortage of natural gas that is hampering electricity generation.
Iraq harbours the world's fourth-largest oil reserves. Its gas reserves are estimated at 112 trillion cubic feet, making them the world's 10th largest, according to US department of energy data.
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ICC Awards for 2021
MEN
Cricketer of the Year – Shaheen Afridi (Pakistan)
T20 Cricketer of the Year – Mohammad Rizwan (Pakistan)
ODI Cricketer of the Year – Babar Azam (Pakistan)
Test Cricketer of the Year – Joe Root (England)
WOMEN
Cricketer of the Year – Smriti Mandhana (India)
ODI Cricketer of the Year – Lizelle Lee (South Africa)
T20 Cricketer of the Year – Tammy Beaumont (England)
The Bio
Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”
Holiday destination: “I like Paris very much, it’s a city very close to my heart.”
Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”
Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”
Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
Fifa Club World Cup:
When: December 6-16
Where: Games to take place at Zayed Sports City in Abu Dhabi and Hazza bin Zayed Stadium in Al Ain
Defending champions: Real Madrid
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%3Cp%3E%3Cstrong%3EDeveloper%3A%20%3C%2Fstrong%3ETribute%20Games%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Dotemu%3Cbr%3E%3Cstrong%3EConsoles%3A%20%3C%2Fstrong%3ENintendo%20Switch%2C%20PlayStation%204%26amp%3B5%2C%20PC%20and%20Xbox%20One%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
RESULT
Arsenal 1 Chelsea 2
Arsenal: Aubameyang (13')
Chelsea: Jorginho (83'), Abraham (87')
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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COMPANY%20PROFILE
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What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Call of Duty: Black Ops 6
Developer: Treyarch, Raven Software
Publisher: Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
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The specs: Hyundai Ionic Hybrid
Price, base: Dh117,000 (estimate)
Engine: 1.6L four-cylinder, with 1.56kWh battery
Transmission: Six-speed automatic
Power: 105hp (engine), plus 43.5hp (battery)
Torque: 147Nm (engine), plus 170Nm (battery)
Fuel economy, combined: 3.4L / 100km
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