How CNPC Stays On Track for Oil in Iraq

Global oil giants were drooling in 2009 when Iraq started auctioning its first oil and gas service contracts since oil industry nationalization in 1972. Bidders were expected to offer a production plateau target and per-barrel remuneration fee.

Under auction rules, the oil company promising the highest production plateau would get first negotiation rights for the resource-rich Rumaila field in southern Iraq. If that company reached consensus on a per-barrel remuneration fee with the Iraqi Oil Ministry, it would win the tender.