Iraqi official confirms the existence of oil problems due to spending cuts for 2016
Baghdad / Mady- Reuters
With the damage to Iraq 's financial situation demanded that Baghdad foreign oil companies to reduce their own budgets develop the oil resources of the country for the second year in a row , but the two sides havenot reached yet an agreement on spending levels.
Word Iraqi government 's request in letters from the Ministry of oil was addressed to BP, Royal Dutch Shell and Exxon Mobil, Eni and Lukoil and Petronas, as reported by the agency . " Reuters. "
the Iraqi official told Reuters : " no agreement has been reached so far with foreign companies on theproposed budgets, and this is causing delays in all the major oil fields projects , "stressing that" the ongoing talks. "
he added that" some foreign companies complained that the proposed budgets may prevent it from continuing operations in Iraq , "pointing out that BP, Shell and Lukoil have already objected to the proposed investment budgets. The Oil Ministry announced on Friday (March 42 016), has announced the payment ofarrears to foreign oil companies remaining for 2015 in the amount of about two billion dollars in April next year, with expected increase "very modest" in production during 2016, indicated that Iraq plans to build amarina Berri , a new oil export card 2.5 million barrels per day.
the agent said the ministry Fayyad grace in an interview with the agency "Reuters" news agency, that "Iraq will be repaid to foreign oil companies arrears remaining for 2015 in the amount of about two billion dollars in the next April , " likely at the same time . " to reach an agreement on contracts by the middle of this year. "
he added blessing, that" one of the ways to reduce costs for companies is to deliver drilling operations to theIraqi government exploration companies or hiring workers local instead of foreign workers. "
he predicted a blessing that the increase in production from Iraq in 2016 "very modest" due to reduced investment budgets for foreign companies affected by the fall in oil prices.
grace, pointed out that "Iraq is in talks with foreign engineering companies to build a new port oil Barre to increase the export capacity of the country. and will reach the export capacity of the new port to 2.5 million barrels per day."
He continued blessing "we chose the right place for the port to export the new oil, which will ensure that we have the full flexibility to export oil additional product."
the display of Iraq 's oil fields during the licenses for the development of tours by international companies to reach a production of at least six million barrels per day within a year 2017, Iraq exported crude oil from theports of Basra and Khor al - Amaya on the Arabian Gulf, as well as the Turkish port of Ceyhan.