Does anyone know anything about the details of the contracts involved in the Iraq auctions? The auction process involves the Iraqi government offering so much per barrel payment for each barrel produced and the company accepting the lowest fee win the auctions. However it is not clear what else is involved. Do the companies get a share of the oil produced or what? Since there is no oil law as yet these are not production sharing contracts I gather but technical contracts. Apparently they are not very profitable at the prices Iraq is offering.
Cheers, ken hanly
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