Sino-British joint oil exploration rights to Chinese companies to win the Iraq oil fields to open the door
Close the door in the oil more than 30 years later, June 30, the Iraqi public auction the right to the exploitation of oil and gas fields. This is the country since 1972 of “nationalization of oil resources policy” since the first tender.
The face of Iraq’s “fear for the days the volume of” the rich oil reserves, the world flocked to the major oil companies, a total of 120 oil companies involved in oil and gas exploration rights to bid, short-listed 41 companies. Eventually, by the British Petroleum (the “BP”) and China National Petroleum [14.82 -2.24%] Petroleum Corporation (referred to as the “oil”), composed of body joint bid won the exploitation of oil fields in Iraq Rumaila right, but also become the only turnover of the project.
7 subject 8 “abortion”
Tender, the same day in the Iraqi capital of Baghdad Green Zone, a hotel, live to the public. Tender was originally scheduled to start June 29, postponed due to weather storms on June 30.
However, the bid was the first day of the dramatic scene. Auction in the six oil fields and two gas fields, only to be auctioned Rumaila oil fields, other are “abortion.” The first single is also the only single of “Rumaila field technical service contract”, by the British BP and the oil component of the bid in his mission. According to Reuters, the reason why the two companies won the contract, mainly due to the United States, led by Exxon Mobil Corporation’s bid groups, refused to accept the Iraqi government is seen as too little of the technical services.
From China, Italy, Britain and the United States, other oil companies, also insisted that the Iraqi government to increase the cost of technical services, with the result that the remaining oil and gas fields have failed to tender the transaction, nobody cares about some of the fundamental. U.S. economic forecasting organizations “IHS international observer” in the Middle East energy analyst Samuel Adams • Ru Ke Qi said that the results of the Government of Iraq will be quite disappointed. “Iraq hinges on the overall development of the current round of bidding.” He said, “only the implementation of a contract the fact that oil is very disappointing, the tender has not been successful.”
In addition to oil, Sinopec, CNOOC has been short-listed were eligible, but with a different oil, Sinopec, CNOOC both standard withdrawal. Sinopec, CNOOC ConocoPhillips has a joint United States, was launched against Iraq oil?͒?? the Consortium hopes that every barrel of crude oil over-production of 26.7 U.S. dollars was paid, but the Iraqi Ministry of Oil are willing to pay only 4 U.S. dollars.
Why Oil and BP in joint
Based on bid results, and British Petroleum BP agree to daily output of Rumaila oil fields, from the current 1.1 million barrels to 280 barrels per day, the two companies will return for the deduction of investment costs 2 U.S. dollars a barrel of crude oil after the reward . Previously the two companies made a joint bid is to recover the investment cost of 3.99 U.S. dollars per barrel of crude oil paid, the final transaction price is only about half as long as the contract period of 20 years.
Oil field exploration and development is a high risk investment, Iraq’s complex political and social environment of instability, exacerbated the investment risk. In addition, Iraq also called for the successful production and operation units, will be subject to Iraqi authorities a “common management”, and further weaken the autonomy of business units to manage and control risks.
Harsh conditions of the Iraqi government, production margins are thin in the end what Rumaila field charm to attract the Sino-British joint mission of the bid? According to the U.S. “Washington Post” said Rumaila field is the largest oil field in Iraq, has about 177 million barrels of crude oil reserves, equivalent to more than half of the nation’s reserves. Sinopec [11.80 -0.51%] Economic and Technological Research Institute, director of strategic??: “2 U.S. dollars is paid after deducting the cost of investment income, although relatively low, but access to the money paid is fixed and secure. Nissan can achieve the goal of 2.8 million barrels per day, the profit is quite substantial. ”
Xiamen University, China’s energy director of the Center for Economic Research??ǿLin said that China and oil together is a complementary combination of BP. Lower cost of oil exploitation, capital adequacy, but relatively little international experience; and is a veteran oil company BP, the international experience, for Iraq’s oil economy and the geopolitical situation is also better informed. BP oil together in the international risk can be reduced to make up for its lack of experience, lack of lack of personnel.
In addition, there are two joint strategic considerations. Larger increment of China’s oil consumption, energy market has great potential, BP and China National Petroleum Corporation to strengthen the long-term cooperation can be further opportunities to develop the Chinese market. The successful tenderer for the purposes of oil to foreign companies operating in the mode of technical services from simple, to develop oil fields rise to the new level.
Outside the media, said China National Petroleum Corporation for the “winners”
The bid is especially interesting is that China has become a “winner.” “New York Times” reported that: “After 6 years of war, the Americans or the Iraqis might not expect, China will become the winner of one of Iraq’s oil fields.”
“New York Times” reported that of the other Western countries should not the Chinese enterprises concerned about Iraq’s oilfields, which enables China to promote regional stability in Iraq to play a more important role, “If you want China to become a responsible world shareholders, on the need for China to buy shares in the world. ”
“Wall Street Journal” commented that, BP-led consortium won the rectification in Iraq, one of the world’s largest oil field leadership, but the British giant and its Chinese partners, the real work has just begun.
Britain’s “Financial Times” pointed out that although the contract will not bring high profits, but the oil will provide an opportunity for China to protect oil supplies, while a key oil and the development of relations between countries.
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