Iraq-Nippon Talks on Nassiriya Oil Field Deadlocked

(Dow Jones), Mar. 1, 2010

The Iraqi Oil Ministry has suspended talks with a consortium of Japanese companies led by Nippon Oil Corp. to develop the giant Nassiriya oil field and could hold a new licensing auction to upgrade the field, a senior Iraqi oil official said Monday.

"The talks reached a deadlock and we aren't going to meet again," Abdul Mahdy al-Ameedi, head of the ministry's petroleum Contracts and Licensing Directorate, told Dow Jones Newswires.

A Japanese consortium led by Nippon Oil Corp. and including energy producer Inpex Corp. and plant maker JGC Corp. (1605.TO) was in talks with Iraq for months. Last time they met was in January but they didn't reach an agreement.

Iraqi officials had previously said that the biggest hurdles for not reaching an agreement with the Japanese companies were how Iraq would pay back the costs the firms would incur for developing the field and also handling the security and safety of the companies' staff.

A decision hasn't been made yet on what to do with Nassiriya, in southern Iraq with estimated proven reserves of 5 billion barrels, but Ameedi said the ministry could hold a "special bidding round" for the field later this year when it would invite a number of international companies to submit bids including Nippon.

Ameedi also said that the field, which currently produces only 50,000 barrels, could be also developed by the ministry through national efforts.

Talks on Nassiriya, which ranks among Iraq's second largest oil fields, were held separately from two licensing auctions held last year which saw 10 oil fields awarded to international oil companies, including the majors such as Royal Dutch Shell PLC (RDSA), Exxon Mobil Corp. (XOM), Italy's ENI SpA (E) and Russia's second-largest firm in terms of production, Lukoil Holding (LKOH.RS).

Iraq aims from these deals to quadruple its current production of 2.5 million barrels a day in six to seven years from now.

Copyright (c) 2010 Dow Jones & Company, Inc.

Related Companies
 Company: Exxon Mobil Corporationmore info


 - Gulf Of Mexico Lease Sale Nets $315M in Bids, Feds Suggest Trump Bounce (Mar 22)
 - Oil Giants Upending Shale Turf Where Wildcat Drillers Once Ruled (Mar 21)
 - ExxonMobil Agrees to Buy 25% Stake in Mozambique's Area 4 Block (Mar 9)
 Company: Lukoilmore info


 - Lukoil Finds Oil at Iraq Well (Feb 22)
 - Lukoil: CEO, VP Sell $34 Million Worth Of Shares (Dec 30)
 - Sources: Russia's Lukoil Appoints New VP For Sales And Supplies (Dec 27)
 Company: Shellmore info


 - Gulf Of Mexico Lease Sale Nets $315M in Bids, Feds Suggest Trump Bounce (Mar 22)
 - Norway Awards 56 Oil And Gas Licences In Mature Areas (Jan 17)
 - Southern North Sea Special Interest Group Launched (Nov 21)
 Company: ENImore info


 - Nigerian Court Overturns Seizure Of Oilfield From Shell And Eni (Mar 17)
 - Zohr to Start Gas Production This Year (Mar 15)
 - ExxonMobil Agrees to Buy 25% Stake in Mozambique's Area 4 Block (Mar 9)
 Company: Nippon Oil Explorationmore info
 - Canadian Oil Sands Halts Syncrude Production After Fire, Prices Spike (Aug 31)
 - Tap Updates Zola-1 Drilling in Carnarvon Basin (Dec 22)
 - Iraq-Nippon Talks on Nassiriya Oil Field Deadlocked (Mar 1)
 Company: Iraq Ministry of Oilmore info
 - Exxon Spearheads Iraqi Water-Injection Project (Apr 19)
 - Iraq to Alter Signature Bonuses on 2 Oil Field Deals (Apr 15)
 - Iraq Plans New Licensing Auction for 3 Gas Fields (Apr 14)
 Company: JGCmore info
 - JGC Clinches $240M EPC Contract to Build Gas Processing Plant in Aceh (Apr 1)
 - PETRONAS FLNG2 Reaches Milestone with Keel Laying at SHI's Shipyard (Nov 9)
 - First Steel Cut for PETRONAS FLNG2 Facility at SHI's Geoje Shipyard (Jun 16)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
United States Houston: Principal II - DES
Expertise: Design Engineer|Drilling Engineering
Location: Houston, TX
 
Sr Reservoir / Production Engineer - Field Engineering
Expertise: Production Engineering
Location: Platteville, CO
 
United States Rock Springs: Entry Level to Senior Engineer - Cased Hole
Expertise: Reservoir Engineering
Location: Rock Springs, WY
 
search for more jobs

Brent Crude Oil : $50.56/BBL 0.15%
Light Crude Oil : $47.7/BBL 0.70%
Natural Gas : $3.05/MMBtu 1.32%
Updated in last 24 hours