Iraq Prepares for Fifth Energy Auction Round

Iraq is preparing for its fifth energy auction after its fourth round attracted lacklustre interest. In the fourth round only three of the 12 blocks got auctioned.

After the conclusion of the fourth round, Iraq's oil minister said that a fifth energy auction was in the works.

"We are preparing for a fifth round because we have more than 60 blocks that are ready to be presented," Abdelkarim al-Luaybi told reporters.

Many analysts believe the reason for the tepid response to fourth round was because Iraq required firms that agree to explore blocks to work under fixed-price service contracts, rather than the production-sharing agreements that are common elsewhere and more popular with major energy firms.

Baghdad also for the first time demanded that firms that won contracts agree not to sign deals with the autonomous Kurdish region in northern Iraq, or any other sub-national authority, without the central government's approval.