Russia's OAO Lukoil Holding (LUKOY) is still interested in the second licensing round to award long-term development contracts for Iraq's untapped oil and gas fields and is prepared to change its conditions, a spokesman for the company said Thursday.
"Yes, we are still interested, we will see the conditions," Lukoil spokesman Dimitry Dolgov told Zawya Dow Jones by telephone from Moscow.
"We might be prepared to change our price conditions if the Iraqi side also change their conditions," he added.
Lukoil, who had a signed deal to develop the West Qurna-2 field under Saddam Hussein's rule which was canceled in 2002, is hoping to revive the deal.
Dolgov wouldn't comment on the price range Lukoil would be happy with.
In June, Iraq held its first round of bidding for international oil companies, or IOCs, to develop six oilfields and two gas fields. More than 30 companies participated but only BP PLC (BP) and China National Petroleum Corp., or CNPC (CNPC.YY), secured one contract after agreeing to decrease their asking price to the government's desired $2 a barrel while other IOCs walked out.
Iraq's oil ministry is set to hold a meeting in August to brief international oil companies on Iraq's second licensing round for 10 oil fields and one gas field, including the super-giant West Qurna phase 2, Majnoon and East Baghdad.
Development of these fields is expected to add a further 2 million barrels a day to current Iraq's production of 2.4 million barrels a day.
Analysts said although there was some disappointment in Iraq's first licensing round because of a disparity in the remuneration being offered, a middle ground will likely still be reached.
"From a resource capture point of view everybody is still interested, they cannot afford not to be. The quality and scale of opportunity available in Iraq is unparalleled anywhere else in the world," said Colin Lothian, a senior analyst at Wood McKenzie based in Edinbugh.
Other companies still interested in Iraq's second round bidding include China's state-owned oil companies Cnooc Ltd. (0883.HK), Sinopec and CNPC.