Daily Archives: June 30, 2009

Carola Hoyos

BP and CNPC have won the right to help Iraq develop the Rumaila field. The UK and Chinese companies beat ExxonMobil, the US oil company, which had partnered with Petronas, the Malaysian oil company. BP clinched the contract when it agreed to reduce its fee per barrel from $3.99 to $2.

But the rest of the auction has not gone as smoothly. In fact, so far, the smaller five of the eight oil and gas fields being auctioned off have failed to find a company willing to accept the narrow terms and the relatively low price Iraq is willing to pay for their services. And the future of West Qurna, the biggest of the fields, is looking in doubt after ExxonMobil and CNPC both rejected Iraq’s tougher terms. Royal Dutch Shell has bid for Kirkuk, but no winner has been announced for that field. Read more

Ed Crooks

On Energy source today:

LIVE: the first bids for Iraq’s oil contracts come in Read more

Oil hit an eight month high on Tuesday and was on track to post its largest quarterly gain since 1990 as optimism for an economic recovery rather than clear news flow continued to drive crude prices.

The energy market defied predications of a quiet US holiday trading period as US crude again broke through the $72 a barrel level, adding to a 3.7 per cent rise in the previous session. Read more

- Oil watchdog cuts demand forecasts
IEA also says threat of supply crunch has receded (FT)

- EU optimistic on defusing Ukraine gas dispute
But stresses aid dependent on reform of gas sector (FT) Read more