Oil: no debt to foreign companies operating in Iraq 12/21/2016
Oil: no debt to foreign companies operating in Iraq
12/21/2015 0 Comments
Oil Minister Adel Abdul Mahdi, on Sunday, the absence of debt of foreign oil companies operating in Iraq, "referring to a review of the oil licensing rounds with these companies for decades. Said Abdul-Mahdi said in a statement "the agency of our economy" has received a copy of it, that "there are no debt on Iraq, and paid off each chapter is operational and capital expenditures for the previous separation or some of the remainder of the one before it, with all the Iraqi and foreign labor, imports and facilities and major works and secondary pay for companies, in addition to the profit of the company which is (1.15-6) dollars for each extra barrel over the (production basis). "
"The mistakes committed by some confusion on them, and the vision of public opinion, is that they calculate expenses like the return for companies, or counted exports only beaten in the current oil prices, and forget the whole production, Vijrgeon rates do not match at all with reality." Abdul-Mahdi, and pointed out that "what is consumed internally (refineries, electricity, etc.) figures preliminary, and measure the rest of the year on year rate, and neglecting some of the details, will be by the end of 2015, the size 184 593 111 barrels of oil, which is what constitutes 15.32% of the total production, which It could be up to 1,204,92,362 barrel. "
And that "and this will be the value of what we consume internally 8405 barrels, to cope with declining resources," adding, "We are continuing to cooperate with companies to rationalize spending and remove any unnecessary expenses or exaggerated, and there are other things in the contracts we are settled, and did well the House of Representatives in the budget of 2016 he demanded of the Oil Ministry to work on the review and negotiation of contracts with the companies, which is what we are doing. "
The oil minister said that "decades of licenses is a service or decades contractor to sustain and develop oil and gas fields, and manages the operation of joint committees between the two parties under the chairmanship of Iraqi party owner of the majority," adding that "this committee decides to production and project implementation plans, and at the end of each chapter (3 Months ) offers companies User expenditures, which scrutinizes, and the headquarters of which are accepted, the ministry of you pay for companies, either in quantities of crude calculated at current prices, or cash. "
He said, "To understand the licensing contracts must understand that what you get Company of the profit is a lump sum (US $ 1.15-6 / barrel, according to contracts) for each additional barrels when production exceeds 10% of so-called production basis, any production of the field before signing the contract and of course also pay operating and investment expenses of the business and the purchase of equipment and installation facilities, and spent by the company to sustain the production and development of the field, "noting that" the contract has a duration of, also has a roof-called production peak, and be all the installations and oil underground king of Iraq.