As Iraq’s 2018 budget became law this week, the Iraqi oil Ministry has announced 11 tender offers for 11 blocs bordering Iran, Kuwait, and one in the Persian Gulf.
The blocs bordering Kuwait include Khazhir al-May, al-Sinam and al-Faw, and a bloc in the Persian Gulf. Sindbad, al-Haweizah, al-Shahab, Zarbatyah and Naftxana are the blocs bordering Iran, the Iraqi ministry announced on Thursday.
Kilabat and Khashim al-Ahmar are two blocs offered from the Diyala province.
Abdulmahdi Al-Amidy, Iraq’s director general of petroleum contracts and licenses explained the ministry showcased to qualified companies which bought the information bundle.
The contracts will be service in nature with minor tweaks. The 16 companies that have bought the information will make their offers on April 15. Two of the companies are from Arab countries.
Iraq heavily depends on oil revenues, resulting in severe fluctuations as the global market changes. Iraqi Prime Minister Haider al-Abadi said that oil is not enough for development in an energy forum in Baghdad this week.
Iraq currently exports more than 4 million bpd and is working to increase that amount, according to oil ministry statistics.
Iraq is a founding OPEC member. In December 2016 amid lower crude prices, members and non-members reached an agreement to reduce production by 1.8 million bpd.
"By the end of this year we are going to assess the market and the results and accordingly we will decide whether to go ahead with another year or six months," Iraqi Oil Minister Jabar Ali al-Luaibi said at the energy conference in Baghdad this week.
Iraq's share is 210,000 barrels a day, according to the Associated Press.
Iraq's 2018 budget bill became law this week. The US-based press agency reported the 104 trillion dinar budget (about $88 billion) has a deficit of 12.5 trillion dinars (about $10.6 billion).
It is based on projected crude prices of $46 per day and an export capacity of 3.8 million barrels, according to the AP.
"The prices are stabilizing and the market is doing very well, so Iraq is monitoring the market ... and we are in collaboration with OPEC," explained Luaibi.
OPEC Secretary General Mohammed Barkind has said that the organization will continue to meet this year before the agreement expires. Source: Rudaw