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The deal for the US$10 billion contract of Iraq’s super giant Nassiriya has not been concluded and talks are still ongoing with interested parties a senior oil official has said.
News agency Reuters reported that Iraq’s deputy oil minister, Ahmed al-Shamma, said that a decision on who will be awarded the massive engineering, procurement and construction (EPC) contract will not be made until questions on financing have been answered.
Iraq will study how each bidder will finance the deal before awarding the contract to the fiancé terms most suited to the country’s interests.
Reports earlier in the week from Japan had stated that a consortium headed by Nippon Oil and including oil exploration and developer Inpex Corp and the respected engineering contractor JGC Corp had won the contract.
“We can’t decide which offer is best unless we receive contract amendments both Nippon and ENI promised to submit. These amendments will change the situation,” Reuters reported Shamma as saying.
Iraq’s oil ministry has high hopes for the Nassiriya. It is hoping that a yield of 150,000 barrels per day (bpd) will be achieved for the first two years after drilling with a target of 600,000 bpd after that. Eni has estimated that the field has the potential output of up to 1 million bpd.
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