Iraq calls for foreign oil companies to increase daily crude production and exports

08/24/2016 (0:01 pm) - The number of readings: 27

Baghdad / term

Iraq's request, on Tuesday, the foreign oil companies to increase oil production and exports with Baghdad to join the countries that shed light on the potential of production such as the International Energy Forum to be held next month in Algeria, while the Oil Ministry announced enable it to export 12 thousand tons of gas liquid and more than a hundred thousand cubic meters of gas condensate, confirming its intention to "best investment" associated gas to oil operations by inviting international companies to work in this sector.

And the holding of Iraqi Oil Minister Ali Jabbar defect, who took office earlier this month, a meeting in Baghdad with oil companies operating in Iraq.

A spokesman for the Iraqi Oil Ministry, Assem Jihad, in a statement received "long", a copy of it, that "the minister stressed the support the work of international companies in order to improve the rates of production and export of crude oil and gas."

Jihad said, "The meeting is to open a new page of cooperation with international oil companies operating in Iraq."

Iraq is the second largest crude oil producer in the Organization of Petroleum Exporting Countries (OPEC) after Saudi Arabia could lead to increase production next to Iran exacerbate the glut of world oil supply and the complexity of the talks between producers inside OPEC and outside the limits of the production in order to strengthen prices.

It is scheduled to meet OPEC producers on the sidelines of the forum, which includes producers and consumers in Algeria during the period from 26 to 28 September \ next September.

The new defect, on Monday, Iraq's request to review the contracts signed with companies in order to reduce the fees that you get when crude prices fall.

As foreign companies, he said that those fees already discounted when taking into account the investments necessary to increase production in obsolete in Southern Region fields and challenges.

Iraq produces about 4.6 million barrels per day of crude and began this year, the export of liquefied petroleum gas and natural gas condensate. The total gas exports since the beginning of the year 12 thousand metric tons of liquefied petroleum gas and more than 100 thousand cubic meters (3.5 million cubic feet) of condensate.

Iraq and reap 95 percent of the general budget revenues from oil sales and linking services agreements with companies including CNPC, BP, Shell, Eni and Exxon Mobil, Lukoil and get those companies paid for the additional quantities of oil being produced from the fields.

Pushing the current service agreements with oil companies on Iraq's budget as the government pays for these companies fixed fees to increase production in aging fields at a time when the country's revenues declined due to falling crude oil prices to less than half compared with 2014.

As Oil Ministry announced, enabling it to export 12 thousand tons of liquid gas, and more than a hundred thousand cubic meters of gas condensate, confirming its intention to "best investment" associated gas to oil operations by inviting international companies to work in this sector.

The agent said the oil ministry for gas, Hamid Younis, in the statement of the ministry, received the "long", a copy of it, that "the total exported quantities of liquid gas until today, amounted to 12 thousand tons," pointing out that "the total exported quantities of gas condensate exceeded hundred thousand cubic meters. "

Younis predicted, that "escalate the exported quantities of liquid gas and gas condensate in the coming period."

For his part, the spokesman of the Oil Ministry, Assem Jihad, said that "the ministry is working on the optimum use of associated gas to oil operations," stressing that "the ministry has sought to accelerate the increase in investment this wealth by inviting international companies to invest in this sector in order to achieve the desired goals and increase production ".

The Iraqi Oil Ministry, said in (the twentieth of March 2016), the first shipment of gas condensate (liquid) from the production of Basrah Gas Company, through the company's export terminal, while showed that the shipment was at a rate of 10 thousand cubic meters constitute the seven thousand tons , it confirmed that the gas condensate are exported without the need to contract work for the existence of demand for it.

It is noteworthy that several concerned or the competent authorities repeatedly called to the need for accompanying the extraction of oil and natural gas investment, stressing that Iraq is wasting more than ten million dollars a day due to lack of investment that gas as a result of the lack of strategic plans by the Iraqi government for its investment, although it deliberately to buy gas natural from neighboring countries.

For its part, South Korea's national oil company, for its withdrawal from the "South Sanjaw" oil field in the Kurdistan region, attributed to the "ineffective" economic.

A spokesman for the company, Cho Jong-Geun, in a statement, followed the "long", "The company decided to abandon the South Sanjaw oil field in the Kurdistan region of Iraq project, because exploration is economically viable results," adding that "the decision was made during a meeting The board of Directors recently, where he found out that the economic feasibility of exploration and production insignificant to some extent makes it difficult to implement the project. "

The coalition Korea has 60 percent of South Sanjaw field in the Kurdistan region, and that the South Korean oil company that owns half of it, has invested Korean oil company, for nearly $ 204 million in exploration and acquisition of this stake since 2008.

The Korean National Oil Company has signed a production sharing agreement in South Sanjaw oil field with the Kurdistan Regional Government, in December of 2008.