ExxonMobil & Lukoil submit offers for West Qurna

Reuters reported that the field, which failed to attract a winning bid in Iraq’s first oil auction in June, has garnered interest in recent weeks from a number of parties. It has reserves of 8.7 billion barrels of oil.

“The Iraqi Oil Ministry is studying new offers from Exxon Mobil and Lukoil for West Qurna phase 1,” Abdul-Mahdy al-Ameedi, deputy director of the ministry’s contracts and licensing directorate, is reported by Reuters as saying.

Ameedi also added that while negotiations were still in progress a remuneration fee of US$1.90 per additional barrel had been agreed with both ExxonMobil and Lukoil.

French supermajor Total are also believed to be interested in re-submitting a bid for West Qurna.

The 4 billion barrels reserve Zubair field is also attracting interest. Italian supermajor Eni has submitted a bid and ExxonMobil may also bid, depending on whether or not its West Qurna bid is successful.

Iraq’s oil minister Hussain al-Shahristani has been quoted as saying that West Qurna and Zubair could earn Iraq as much as $100 billion.

The interest in the two fields will be welcomed by the Iraq government who are desperate to kick-start major oil development in the country after years of neglect. Most of the country’s oil infrastructure requires the major investment and expertise that foreign oil companies can provide.

The second round of Iraq oil auctions are due to be held in Baghdad in December.