On Wednesday Iraq offered up to three of its gas fields to several global firms in its third energy auction since the U.S invasion on 2003. Iraq hopes to jump up to the top energy producers in the world and ward of the impression of war and isolation.
However, according to analysts, the gas auction, which is set to start at 10AM local time, has produced little interest from global firms despite their enthusiasm to tap the country’s wide gas reserves. This is because interested bidders will have to face strict terms, shaky security, as well as regional opposition during the bidding.
Iraq will open gas fields at Akkas in the western part of the desert, Mansuriyah near the border of Iran, and Siba in the somewhat peaceful place in the southern oil center of Basra for bidding.
To sum up all three fields, they have estimated 11.23 trillion cubic feet of gas reserves. That is about 10 percent of Iraq’s total and proven natural gas reserves. They ranked 10th on the world’s largest gas reserves having a total of 112 trillion cubic feet.
The auction has already been postponed twice to allow companies more time to check the contract terms. 13 companies registered for the bidding, which includes Italy’s ENI, France’s Total, Edison, South Korea’s KOGAS, Norway’s Statoil and many more.
Yet, not all companies are expected to do the bidding on Wednesday according to industry observers. Winners of the bidding will need to make an almost non-existent gas infrastructure and networks of pipeline and dare the risks of working in aggressive places.
