Policy & Regulation

Iraq preparing new oil and gas contracting model

The terms of Iraq’s new contracting model are crucial if the country is to keep IOCs interested The terms of Iraq’s new contracting model are crucial if the country is to keep IOCs interested.
By Verity Ratcliffe 7 March 2018 0 29885
The Dora oil refinery in Iraq. (PA)

Iraq’s Ministry of Oil is preparing to unveil its new IOC contracting model, and foreign players will be paying particular attention to any changes to the royalty scheme. 

“The most important thing they are looking for [ahead of the licensing round] is the amendments to the service contracts,” Abdulmahdy al-Ameedi, the ministry’s director general of upstream oil contracts and licensing rounds, told delegates at the Iraq Petroleum conference in Berlin last week.

Under the current services contract model, IOCs are paid according to a cost-recovery mechanism that...