Iraq invites firms to second oil bid meeting

Published: 27 July 2009 12:33 GMT, Author:Perry Williams, MEED

Iraq's Oil Ministry will hold a roadshow for its second oil licensing round in Istanbul on 25 August in an attempt to reverse the disappointing results of the first bid round held in June.

The ministry's Petroleum Contracts & Licensing Directorate says it has invited 45 qualified oil companies to attend the meeting.

The directorate is offering licences covering 10 oil and gas fields which have yet to be developed.

The fields include the highly prized Majnoon field in Basra Province and West Qurna phase 2, which holds about six billion barrels of oil.

The remaining fields include Halfaya, East Baghdad, Gharraf, Qavara, Najmah, Badrah and Merjan/Kifl/West Kifl.

Iraq is also offering an Eastern Block comprising the Gilabat, Khashm al-Ahmr, Nau Doman and Qumar fields.

The government previously said it will sign contracts by the end of 2009 and that the fields are capable of producing up to 2.5 million barrels a day (b/d) of oil by 2013.

In June's licensing round, Iraq's Oil Ministry awarded just one licence to an energy major as companies baulked at Baghdad's tough terms and conditions.

Related articles by Zemanta

• US could speed up Iraq pull-out (news.bbc.co.uk)
• What al-Maliki (and Iraq) Still Need from Obama (time.com)

Special Report: Jordan - Closer regional trade links benefit economy

The economic slowdown in the Gulf is having a direct effect on Jordan's economy, and highlighting its dependence on remittances from the 600,000 Jordanians working in the GCC.

Such is the volume of money these workers send back that remittances accounted for almost 15 per cent of the kingdom's gross domestic product (GDP) in 2008. But remittances fell to $273m in April this year, down almost 10 per cent compared with the same month in 2008.

Jordan's economy is also vulnerable to external shocks because of its reliance on foreign direct investment and global export markets. Both of these key GDP generators have recorded lower growth rates in 2009 than the previous year.

There is one area of optimism, however. Trade with its neighbour, Iraq, is providing Jordan with a much needed fillip to its economy. Baghdad's $70bn reconstruction plan is translating into orders for cement, bricks and other materials from Jordanian companies, while the port of Aqaba receives a large proportion of the overseas goods destined for Iraq.

A surge in Iraqi reconstruction efforts could not have come at a better time for Jordan, whose future economic prosperity relies on good relations with its often troubled neighbours.