“Remuneration fees now start later and for fewer barrels,” said Sabine Schels, an analyst with Bank of America Merrill Lynch. “Plus, fees ranging between US$1-US$3 bpd are very low, especially considering the large capital investments required for development. Such weak economics are prompting some international oil companies to opt out of their stakes.”
No wonder, while Exxon Mobil Corp., Royal Dutch Shell PLC and BP PLC led the country’s successful first licensing round in 2008, they were absent in the disastrous fourth round in 2012. Frustrated by Baghdad’s tough rules, Exxon Mobil signed six deals with KRG last year, angering Prime Minister Nouri al-Maliki’s government, which has threatened to cancel its contract in the 43-billion-barrel West Qurna 1 field in the south.
Following Exxon Mobil’s lead, ConocoPhillips Ltd., Eni SA and BG Group, all with operations in southern Iraq, have been eyeing the north.
Norway’s Statoil ASA sold its stake in the 140,000-bpd West Qurna 2 field in the south last year, leaving the central government in a state of panic.
http://business.financialpost.com/2013/03/22/two-iraqs-one-big-mess/?__lsa=679d-e9b6
= new reply since forum marked as read