Nexen in the running for Iraq oil and gas contracts
CALGARY - Canadian oil and gas Explorer Nexen Inc. is one of 32 international oil companies competing bids U.S. $ 2.6-billion to work in some of Iraq's largest oil and gas fields.
Nexen, only Canadian company in the group revealed by Reuters Monday, has qualified to participate in the first round of oil and gas contracts from the U.S. led invasion in 2003.
Iraq plans to give 20-year contract for the provision of services in order to increase the output of six oil fields to offer and to develop two gas fields in June.
"We had many successes in Yemen. ... Logic inform likely we will have the opportunity to success in a place like Iraq, as well," said Mike Harris, Nexen vice-president of investor relations. "But we must keep our options and go to the table and see what's going away."
The U.S. $ 2.6-billion, 16 times the number of the initial demand for a fee in the amount of approximately U.S. $ 164 million, leading to speculation that Iraq is looking for money to make up for falling export earnings due to the slide in oil prices and declining production. Income from oil accounted for around 90% of government revenue in 2006.
One oil executive said the higher premiums could squeeze out smaller signature from 32 oil companies that can not afford such payments.
Nexen is not yet discouraged Mr. Harris said.
"Since this is the offer, we will put in what we feel is a fair offer," he said. "But we are nowhere near that."
Nexen rose to one of the biggest Canadian oil companies with oil project Yemen. It is a combination of several of the largest companies in the world, including all the main oil - from BP PLC to Exxon Mobil Corp. - and some of the largest companies controlled by the state - from Russia, OAO Gazprom to China National Petroleum Corp, in search of a piece of Iraq's energy business .
Other companies, such as the Canadian Talisman Energy Inc. and Canadian Natural Resources Ltd. was also at one point, hoping for a piece of Iraq's oil wealth.
Iraq has the third-largest in the world, but largely untapped oil reserves. The country has nine super giant fields with more than five billion barrels of reserves and 22 giant fields with more than one billion barrels, according to data compiled by the U.S. Energy Information Administration.
However, the rehabilitation of the U.S. invasion has proved difficult due to security issues and is currently producing around 2.2 million barrels a day, well below its potential. Iraq wants to increase production of crude oil by 1.66 million b / d after the oil fields will be transferred to the new operating companies.
Nexen, which controls the Long Lake oil sands project and operations in the North Sea and the Gulf of Mexico, releasing its results today for the first quarter and hold its annual shareholders meeting.
Nexen, only Canadian company in the group revealed by Reuters Monday, has qualified to participate in the first round of oil and gas contracts from the U.S. led invasion in 2003.
Iraq plans to give 20-year contract for the provision of services in order to increase the output of six oil fields to offer and to develop two gas fields in June.
"We had many successes in Yemen. ... Logic inform likely we will have the opportunity to success in a place like Iraq, as well," said Mike Harris, Nexen vice-president of investor relations. "But we must keep our options and go to the table and see what's going away."
The U.S. $ 2.6-billion, 16 times the number of the initial demand for a fee in the amount of approximately U.S. $ 164 million, leading to speculation that Iraq is looking for money to make up for falling export earnings due to the slide in oil prices and declining production. Income from oil accounted for around 90% of government revenue in 2006.
One oil executive said the higher premiums could squeeze out smaller signature from 32 oil companies that can not afford such payments.
Nexen is not yet discouraged Mr. Harris said.
"Since this is the offer, we will put in what we feel is a fair offer," he said. "But we are nowhere near that."
Nexen rose to one of the biggest Canadian oil companies with oil project Yemen. It is a combination of several of the largest companies in the world, including all the main oil - from BP PLC to Exxon Mobil Corp. - and some of the largest companies controlled by the state - from Russia, OAO Gazprom to China National Petroleum Corp, in search of a piece of Iraq's energy business .
Other companies, such as the Canadian Talisman Energy Inc. and Canadian Natural Resources Ltd. was also at one point, hoping for a piece of Iraq's oil wealth.
Iraq has the third-largest in the world, but largely untapped oil reserves. The country has nine super giant fields with more than five billion barrels of reserves and 22 giant fields with more than one billion barrels, according to data compiled by the U.S. Energy Information Administration.
However, the rehabilitation of the U.S. invasion has proved difficult due to security issues and is currently producing around 2.2 million barrels a day, well below its potential. Iraq wants to increase production of crude oil by 1.66 million b / d after the oil fields will be transferred to the new operating companies.
Nexen, which controls the Long Lake oil sands project and operations in the North Sea and the Gulf of Mexico, releasing its results today for the first quarter and hold its annual shareholders meeting.
