ONGC will finalize its strategy only after a new government is formed at the centre, a source said.
Some of the global players to qualify include BHP Billiton, BP, Chevron Corporation, Petronas, China National Offshore Oil Company Limited, China National Petroleum Corporation Limited, Gazprom, Total, ConocoPhillips, Royal Dutch Shell Plc, Mitsubishi Corporation and Nippon Oil Corporation.
The Iraqi government, which has invited bids for blocks, has asked the consortia to submit their bids by June 2009. Iraq also plans to sign the contracts in August 2009.
Companies will have to pay a signature bonus within a month of winning a contract. This fee has been increased manifold since the qualifying round held in November 2008.
“The increase in signature bonus could make the bidding firms cautious and that is why they would go in for a consortia approach to minimise the risk,” an analysts said.
These bonuses add to the burden of requirements for huge early investments in the fields,” analysts said.
The signature bonus for the three oil fields works is to be about $1,200 million.
Separately, it stands at $300 million for Zubair, $400 million for West Qurna and $500 million for Rumaila.
