Efforts to amend the contracts of oil companies and reduce costs

The Ministry of Oil continue its consultations to amend the contracts for the international oil companies operating in Iraq, in light weights because the amendments include participation b »profit and loss». A spokesman for the Oil Ministry, Assem Jihad, in the interview that «the ministry is continuing in consultation with international oil companies operating in Iraq, to review the licenses obtained by decades », indicating that« includes a review held every oil field on the unit to reach a new agreement on it achieves the benefit of both parties, according to the understanding
between them ».

He added that« one of the terms of the licensing contracts offers the possibility of revision in the light of Variables », adding that« dialogues with the oil companies are going about quiet until now ». Jihad is likely to« include changes to the oil licensing reduce production costs and the proportion of profits contracts », adding that« the ministry will announce the details of each contract after the completion of agreed upon with the company concerned ».

Furthermore, said the Commission on oil and energy parliamentary member Aziz Ugaili: that the former officials in the oil ministry, did not think the changes that can occur to world oil prices, when they signed licensing rounds decades, pointing out that they «thought only profit is possible to achieve a timely manner». He added Ugaili, in an interview, that «Iraq pay for that minor thinking after falling oil prices and has become the loss of its share alone», adding that «the current oil minister, Adel Abdul-Mahdi, is working to modify some of the terms of licenses consensual contracts, without means So cancel ». He predicted a member of the Commission on oil and energy parliamentary, that« the amendment is heading to the participation of loss and profit as is the case in the Kurdistan region », ruling that« oil companies concerned rejects amendment decades licenses.