Iraq agrees with Exxon Mobil on the payments field, West Qurna oil

12/03/2012 15:42

Erbil, March 12 / March (Rn) - An Iraqi oil official said that Exxon Mobil and Baghdad reached an agreement on payments for the U.S. company to work in the field of the giant West Qurna-1 after negotiations lasted months on the terms of the contract.

Usually prefer foreign oil companies operating in the expansion of Iraq's oil sector to get oil for as much of the capital and service charges because the cash payments arrangements more complex.

And signed me. Me which is leading the Rumaila and Italy's ENI which is leading the Zubair oil sales agreements with Iraq from the beginning, the first step to ensure that access to payments in kind.

And "Reuters" quotes a source as saying that the sector of Exxon Mobil and its partner, the younger Shell have continued to negotiate to fill gaps in the contract.

The Iraqi official said that after negotiations the parties reached a long-term agreement under which you get the largest oil company listed on the stock market in the world on their dues in the form of ore. Exxon and Shell spent $ 910 million on the West Qurna-1 field last year and disbursement of the two companies $ 470 million in cash.

The official said by telephone from Baghdad, "There is an agreement in principle, but have not recorded yet ... Exxon asked to reformulate some of the language."

Iraq has signed several contracts with international oil companies target to increase production to 12 million barrels per day by 2017. But observers of the sector reckon that the production is limited to half that amount because of the problems of infrastructure and logistical problems.

Under the terms of service contracts, Iraqi oil is important that companies get on their payments on time so that it could make a profit.

Exxon and the U.S. has angered Baghdad signed a contract with the Government of drilling Kurdistan region of Iraq is a federal government considers illegal.

The Government of the Territory in November from October, the signing of an agreement with Exxon to explore for oil in the six regions. And Exxon is the first major oil company deal directly with the Kurdistan region.

Rex Tillerson said the CEO of Exxon said last week that the company is committed to working with both sides.