It warns oil companies operating in Iraq to increase its spending 9/16/2015
It warns oil companies operating in Iraq to increase its spending
9/16/2015 0 Comments
The Oil Ministry has warned oil companies operating in Iraq to increase its spending on investment projects for the next year in 2016, due to falling oil prices and military operations against al (Daash), which stipulated that companies not impact on oil production rates. The director of licensing at the Ministry of Oil Abdul Mahdi al-Amidi, in a press statement Otalaatt by the news agency Buratha, "We have asked the oil companies in the message we sent them to take into account a downward trend in oil prices and financial returns few of the government, which may not cover the cost of their investments." Amidi said that "there is a condition with contractors is that the reduction, which will be introduced on investment should not affect the planned oil its production rates in 2015," pointing out that "The oil ministry does not expect to lead cut costs to reduce production from the current rates agreed upon." . According to a letter sent by the licensing department in the Ministry of Oil to oil companies that "because of the low financial revenues caused by falling oil prices, the Iraqi government has reduced sharply allocated to the Ministry of oil money," indicating that "This in turn will reduce the amount available to compensate for the cost corporate spending on oil projects. " The letter demanded the companies to "cuts in spending power plans for 2016, to be submitted to the government requests to do so no later than the 30th of the current month of September, for reasons related to the fall in oil prices and the impact on the country's imports.