Iraq oil auction dashes majors' bonanza hopes

Iraq’s first auction of contracts to develop its oil fields since the U.S.-led invasion was not the bonanza for the oil industry that executives hoped, and has tempered eagerness to participate in future bid rounds.

Iraq closed the oil auction on Tuesday after awarding just one of the eight fee-paying contracts on offer, to a consortium led by British oil major BP.

For five of the fields, companies sought operating fees far above what Iraq was prepared to pay, prompting the government to ask bidders for the seven unawarded contracts to resubmit their proposals.
Reuters