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Oil Minister of Basra: Iraq will face a big dilemma if disrupted licensing contracts
10/29/15
Warned oil minister Adel Abdul Mahdi, on Thursday, that Iraq will face a big dilemma if disrupted licensing contracts, and as he emphasized the need to make corrections in some licensing contracts, pointed out that the next amendments are not against licensing companies.
Said Abdul-Mahdi said in an interview for a number of media on the sidelines of his visit to the Zubair oil depot in Basra coming from Dhi Qar, "The licensing rounds should not be evaluated to calculate per year are long projects term extends almost for 20 years, the major projects include spending millions of dollars "noting that" the costs are high at the beginning of projects, but in the long term has to be yielding much higher than the costs, but the feasibility of such investments. "
He added that "Some people look at those contracts from the perspective of a short period is noticed the presence of a huge bug where, we do not deny the existence of some gaps while there are those who only look to the long term of this contract or when oil prices are high," pointing out that "there are those who believe that contracts very perfect and we say must be considered her that she is not in the event of low oil prices do not rise, but have a look her in a balanced manner. "
He stressed Abdul-Mahdi, that he "definitely need some corrections in some licensing contracts due to lower oil prices," noting that "the next amendments are not against licensing companies, and we do not want companies to feel that they are investment projects losing but must at the same time not to be those contracts against the interest of the economy, especially that there is a universal understanding and understanding of national shows the limits of the profit of these companies shows the yield which assumes that Iraq gets it. "
Abdul-Mahdi, and pointed out that "licensing rounds decades is the governor and must be amended by agreement and understanding with the companies," warning that "Iraq will face a big dilemma if disrupted licensing contracts and this must be considered a high national perspective and without political Maziadat".
He said Abdul-Mahdi, we realize that "those companies are not charities, but for-profit and for profit certain rates," adding that "when fighting negotiations to modify the licensing contracts, we we're in a positive spirit, because the negative relationship with companies lead to problems and complexities of a negative impact on the Iraqi economy ".
Asked Abdul-Mahdi, that "the drop in oil prices made us tiger crisis, how if Contractors (licensing companies) stopped working?", Noting that "if the oil represents 10% of the budget to have entered negotiations In other words, however we had a great eagerness to be negotiations where enough of professionalism and transparency. "
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