In March 2009, the government of Iraq decided to hold its first oil field auctions. The auctions were for service treaty on the southern oil fields of the country; the victor would get the right to produce oil above a specific target for a fee that is fixed. The bidders struggled on the fee charged per the amount by which they guaranteed to raise generation and barrel. At the same time, the Kurdish regional authorities continued to sign foreign firms on Production Sharing Arrangements for its oil fields, uncharacterized by the national management. In a context of ongoing (if much reduced) political violence and legislative stalemate in the national parliament, three actors required to make crucial decisions.
The Future of Iraq Project (A) case study solution
The CEO of Addax Petroleum, Jean Claude Gandur, needed to decide whether to continue investing in the Kurdish area in light of the continuing opposition of Baghdad. The Iraqi oil minister, Hussein al-Shahristani, desired to design the oil auctions in such a manner that oil companies would be moved to invest, and invest quickly, despite the lack of a national oil law. What would the three actors decide, and how would their choices change the future of the world petroleum market and Iraq?
PUBLICATION DATE: September 21, 2009 PRODUCT #: 710002-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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