Bashneft And Premier Close To Clinching Block 12

Russia�s Bashneft is in advanced talks to negotiate an exploration deal for Iraq�s Block 12, for which it made a failed bid in Baghdad�s fourth upstream licensing round on 30-31 May. Then, PetroVietnam and its partners Bashneft and UK independent Premier Oil bid a $9.85/barrel of oil equivalent (boe) remuneration fee for the oil-prone block in Najaf and Muthanna provinces and also failed with a $7.07/boe bid for Block 10. �As a result of further negotiations initiated by Bashneft,� Baghdad awarded Block 12 to Bashneft and its 30% partner Premier at a remuneration fee for any future production of only $5/boe, the Russian firm said. If finalized, the award to Bashneft will put the fourth bidding round, widely viewed as a failure, in a slightly better light (MEES, 4 June). News of the Bashneft award came as Iraq concluded signing ceremonies for the three blocks awarded during the May bidding round. Pakistan Petroleum signed for Block 8 on 15 July. Partners Kuwait Energy Co, Dubai�s Dragon Oil and Turkey�s TPAO signed for Block 9 on 16 July. Russia�s Lukoil and Japan�s Inpex signed for block 10 on 18 July.

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