News and Analysis
Baghdad blacklists Sinopec
Iraq has banned China's Sinopec from the country's second bidding round because the state-run player has yet to ditch a contract in Iraq's northern Kurdistan region inherited when it took over Addax Petroleum, Iraq's Deputy Oil Minister Abdul Kareem al-Leaby said.
October 02, 2009: Abdul Manhdyal-Ameedi, the deputy head of the ministry's petroleum contracts and licensing directorate, which is in charge of Iraq's bidding rounds, confirmed that the ministry has blacklisted Sinopec. "Sinopec is blacklisted unless it changes its position and withdraw from these (Kurdish) contracts," he told the news agency. Sinopec had written to the ministry saying "it would correct its position" but the ministry was not convinced by their answer,he said.
He added that Sinopec had violated ministry regulations by acquiring contracts in the Kurdistan region which are not approved by the federal government in Baghdad. "We still hope that Sinopec would give up its Kurdish contract," the official said. He said the ministry would hold a workshop in Istanbul on 18 and 19 October to discuss the second bidding round. He said15 oil and gas fields were on offer in the round, including some of Iraq's largest. It is likely Sinopec would be prevented from taking part in that meeting, he said.
Addaxsigned a contract with the semi-autonomous Kurdistan Regional Government (KRG)in northern Iraq, which has angered the central government in Baghdad. Thecentral government has said deals struck with the KRG are not valid becausethey have not been approved by the Baghdad government. Sinopec is one of 45international oil companies prequalified to take part in bidding. "We havecancelled Sinopec's prequalification," Ameedi said. The ministry officialsaid most of the 45 companies have bought data packages prepared by the OilMinistry on the oil and gas fields listed in the second bidding round.