Oil Ministry: Iraq trading with global companies reduce the cost of oil production

Direction Press Special / Oil Ministry confirmed that the service contracts are usually reviewed with international companies, as demonstrated it had asked these companies to reduce expenses. He said a spokesman for the Oil Ministry, Assem Jihad, in an interview with "Press direction" that after the drop in oil prices began producing countries are considering reducing the costs production of oil, including Iraq which is trading with global companies to reduce the cost of oil production, noting that receptive to the subject of international companies. He pointed out that the House has hosted a number of officials in the oil ministry were explained everything related to service contracts and agreed that these contracts where the great benefit of Iraq, stressing the Ministry of Oil bygone these contracts, which extends to a period of 20 years, pointing out that these contracts made to Iraq since 2009 revenues estimated at $ 340 billion, and what has been spent during this period is $ 36 billion and this shows the success of these contracts.

With regard to natural gas, the article drew "Jihad" that Iraq is going steady in this direction steps, stressing that most of the volumes of gas that exists in Iraq is associated petroleum gas operations, persisting that this gas increases with oil production and therefore, Iraq has established the Basra Gas Company in cooperation with the my company "Shell" and Mtsiaubaishe "to invest gas from three gas fields where made great strides in investment this article, noting that the output reached 1,100 million cubic feet per day, and this amount is not insignificant, covering part of the local need, such as power plants and factories petrochemicals and fertilizer factories and so on.

He said the plan of these companies that gas production up to two billion standard cubic feet in the near future, adding that there is a growth in gas investment in the provinces of Basra, Dhi Qar, Maysan, Wasit by international companies.

It is said that oil prices currently ranging at $ 30 due to oversupply, especially after OPEC's decision at its meeting held on the fourth of last month to increase output by 1.5 million barrels to be a daily total of countries exporting 31.5 million barrels.