Iraq oil auction flops
30/06/2009 - 16:33:04The first international bidding process in more than 30 years for development rights to some of Iraq's oil fields finished today with only one sector being awarded.
Iraq had offered six oil and two gas fields in a landmark auction the government hoped would help boost output to four million barrels a day and generate cash it desperately needs for post-war reconstruction.
However, the bidding round faltered quickly as companies demanded terms far greater than the government was willing to provide.
The country, which sits on 115 billion barrels of crude reserves, currently produces about 2.4 million barrels per day and was hard hit by the collapse of oil prices in the second half of 2008.
| Related Stories: |
|
