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Calls to amend the contracts of foreign oil companies in Iraq
3/29/15
At a time when Iraq is trying to increase its oil production agreement with foreign oil companies operating in the fields to more than three million barrels per day to cover the deficit in the 2015 budget, some companies refused to develop its work to increase the production of non-payment of dues, sees interested in affairs of the oil need to amend some of the items signed with foreign companies in order to keep pace with the circumstance experienced by Iraq of the low price of oil and the control of the organization of the Islamic state on a number of oil fields after June 10 last.
Kaveh Mohammad demanded to amend the terms of contracts with foreign companies (IRIN)
And threatened Russia's LUKOIL to reduce its investment in Iraq in the event of rejection of access to more oil-for-work project in West Qurna 2 because of the difficulty of obtaining financial entitlements.
And suggested that oil companies cut spending on development work in Iraq after Baghdad told her that the decline in oil prices and the war on state regulation increase the difficulty of payment.
Debt
He acknowledged Iraqi Oil Minister Adel Abdul Mahdi, the beginning of this month that his country is the city of the oil companies operating in more than twenty billion dollars, noting that Iraq fired last year some of the entitlements of the oil companies in return for what has been achieved from production in the year 2013, and then deported dues last year to 2015, which added to this year dues.
And approximately the value of payments to foreign companies $ 18 billion in 2015 under current service contracts.
And that Iraq has already signed contracts last year with a modified BP British and Italian companies Eni and Russia's Lukoil states cut targeted production levels and also to reduce the share of the government in Baghdad from 25% to 5%.
Modifying contracts
And see the oil and energy parliamentary member Kaveh Mohammad need to conduct serious negotiations between the Ministry of Oil and foreign oil companies to modify some of the terms of contracts with these companies, because of existing contracts formula and what Iraq is going through does not fit with the current situation, and therefore the government is unable to pay dues to oil companies .
He noted in an interview with the island revealed that "there is a tendency for the Iraqi government to extend the contracts with foreign oil companies, and this is what may give assurances to these companies in order to continue its work and to increase the production capacity of the fields commensurate with the plan for it."
For his part, reduced oil expert Hamza Jeweler threats from oil companies operating in Iraq for its commitment to reducing its investment contracts signed with the government, stressing Iraq's ability to pay his dues as it is so far not been affected by the financial deficit in the budget year 2015.
Nice Ugaili warned of continued weakness in oil production (IRIN)
He added to the island "that Iraq would pay dues of oil companies amounting to about twenty billion dollars through its allocated in the budget, bond issuance amount," pointing out that his country's continuing with its plan to increase oil production to more than three million barrels of oil a day this year.
Close policies
He warned economist nice Ugaili of continued weakness in oil production because of the status of foreign oil companies is stable, and the oil crisis between Baghdad and Erbil, which has not been resolved once and for all, and the control of state regulation of a number of oil fields.
He acknowledged Ugaili in a statement to the island, the collapse of a lot of Iraqi politics, including oil after the control of state regulation on the areas where the oil wells there, and the problems between the region and the center, noting that it is the right of foreign companies to demand greater quotas in order to be balanced with the losses.
But he believes that foreign companies were not successful in the development of oil fields and merely the extraction of oil.
Among the most prominent foreign oil companies operating in Iraq, especially the southern fields -Your Mnha- There France's Total, Royal Dutch Shell, British lobby me, and Exxon Mobil US.
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