BAGHDAD — A senior Iraqi official says Baghdad has awarded Russian oil giant Bashneft rights to explore for oil in the south of the country after nearly one month of negotiations.
Bashneft and Vietnam’s PetroVietnam were part of a consortium led by UK’s Premier to bid for Block 12 in Iraq’s fourth energy bidding round in May. The consortium rejected the government’s proposed fee of $5 per barrel of oil equivalent as too low and sought $9.85 for each barrel.
The deputy director of the Oil Ministry’s contracts department, Sabah al-Saidi, said Sunday that it reached a separate agreement with Bashneft last week after it accepted the $5 fee.
The May bidding round drew lukewarm response from foreign companies due to tough contract terms.
