Home / Iraq shocks IOCs with $2.5 billion oil demands

Iraq shocks IOCs with $2.5 billion oil demands

by Kevin Baxter on Apr 28, 2009

2 Comments

An Iraqi oilfield - are they now too expensive? (Getty Images)

Iraq have sent shockwaves through the world’s biggest publicly owned oil companies by demanding nearly US $2.5 billion more than previously agreed to win the contracts for some of the country’s biggest oilfields, according to a government document obtained by the news gathering agency Reuters this week.

Any international oil company (IOC) interested in bidding for a work contract for six oilfields and two gas fields will have to pay the extra money, which Reuters calculated as almost 16 times more than the $164 million that was initially demanded.

"That was the biggest shock in the document. It really came out of the blue and was a big slap in the face," Reuters quotes one oil worker at one of the bidding IOCs as saying.

Reuters also reported that the winning bid for Iraq’s largest oilfield, Rumaila, is a staggering $500 million. The country was initially asking for $55 million.

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FEATURED COMMENT

Mr Corkan, What do yo know about Iraq & Kuwait? Iraq protected Kuwait and the rest of the Gulf Arab States when Khumai

2 Comments

Readers' Comments

John Goldsmith (Dec 18, 2009)
Manchester
United Kingdom

Andy Corkan - Iraq paying Kuwait
Mr Corkan, What do yo know about Iraq & Kuwait? Iraq protected Kuwait and the rest of the Gulf Arab States when Khumaini wanted to add all Arab neighbouring countries to Persia. We've got to remember too "Thanks to your Country that helped Iraq to stop Iran" - mind you no American nor Kuwaitie sacrifices then! It was only the Iraqis as the Saudies call it "The Arab Eastern Gate" which protected the tiny Emirate, which was part of Basrah! By the bye do you know where Basrah is? Remember, The said Emirate will always look over their shoulder when it comes to Iraq! And I hope one of the days the Emirate and their people will wake up and with the help of Allah become good muslims and less mean spiritually and financially.

Andy Corkan (Apr 29, 2009)
Doha
Qatar

Iraq
They obviously need the money to pay back Kuwait for 1990.

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