Baghdad calls for international oil companies to shut down their offices in Dubai and the high cost

[ltr]Baghdad calls for international oil companies to shut down their offices in Dubai and the high cost of managing Iraq[/ltr]

 Since 11/01/2016 18:41 pm (Baghdad time)
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[ltr]Follow-up - the balance of News[/ltr]
[ltr]According to "Reuters" news agency, citing three industry sources, on Tuesday, that Iraq demanded the closure of the international oil companies with a high cost in Dubai offices use to manage their operations in Iraq as a means to reduce their budgets.[/ltr]
[ltr]It means this step, which was taken by some of the major oil companies that develop Iraq's giant oil fields in the south of the country that the companies will be forced to transfer hundreds of contractors inside and outside the country every few weeks and will lead to reduce the size of the regional centers for companies based in the United Arab Emirates near Iraq.[/ltr]
[ltr]With the pressure on the financial resources of Iraq called the largest oil producer in the Oopk- foreign oil companies last year's second-reducing spending for Almsturiat proposed that almost stopped the entire investment in the first half of this year in major projects.[/ltr]
[ltr]And forced oil companies to help Iraq develop its vast fields of settling with Baghdad expenditures each year, including labor costs.And then it is made to companies of Iraqi crude export income produced from existing fields.[/ltr]
[ltr]This arrangement worked smoothly when oil prices were above $ 100 a barrel, but the collapse in global crude prices mean that Baghdad pay fees in Dubai with high prices, while revenue from oil sales drop dramatically.[/ltr]
[ltr]However attractive the global culture and the lifestyle of Dubai and one of the most popular financial centers in the world of regional and international companies due to its security and its approach in support of the investment.[/ltr]
[ltr]And the major oil companies such as Royal Dutch Shell, BP and Lukoil, which runs Iraq's oil fields has regional offices in Dubai.[/ltr]
[ltr]The source said the Iraqi Oil Ministry said that "one of the measures taken by the Ministry of Oil, which is to ask the oil companies to cut costs and number of employees to a minimum and the closure of its offices in Dubai."[/ltr]
[ltr]The source added that the ministry does not see the benefit of companies that have offices in Dubai and that they can come to Iraq at a lower cost because all of that is being paid off the cost of service contracts.[/ltr]
[ltr]The two executives in the international oil companies operating in Iraq, the Iraqi request.[/ltr]
[ltr]A source said the oil sector from one of two companies that the company is used to working in Iraq from its office in Dubai and that workers are accustomed to mobility inside and outside the country.[/ltr]
[ltr]He added that Iraqis reject that currently demanding the closure of the Dubai office and stay in the country for six weeks and then spend two weeks abroad.[/ltr]
[ltr]For example, Shell -alta had said in May it would cancel 12 thousand and 500 jobs, or the equivalent of about 12.5 percent of its workforce Aalemya- to reduce the size of its office in Dubai and rearranged its operations there after the cut of jobs worldwide and the closure is linked to Iraq's office in the UAE.[/ltr]
[ltr]Foreign official said the company for oil, "the ministry (the Iraqi Oil Ministry) was addressing the international oil companies over the past four years on the Dubai offices," he said, adding that the ministry is likely to have been deducted the costs of the Dubai office of invoices paid to oil companies over the past year.[/ltr]
[ltr]Officials Iraqi oil official said in August that the country reached an agreement with BP and Shell, and Lukoil to resume faltering investment in the oil fields of development, allowing companies to resume projects have been stopped this year and increase crude production in 2017.[/ltr]
[ltr]Iraq relies on oil for almost all of its revenues and spends heavily to fight al "Daesh" in its provinces of North and Gharbah.anthy 29 / tc n[/ltr]


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