Oil Minister reviews the calculation of entitlements oil companies through licensing contracts

2012 2015
{Baghdad: Euphrates News} Oil Minister Adel Abdul Mahdi, on Sunday, that "decades of licenses is a service or decades contractor to sustain and develop oil and gas fields," noting that "the management process is a joint committees between the two parties under the chairmanship of Iraqi party majority owner."
He said Abdul-Mahdi said in a statement the agency {Euphrates News} received a copy of it today, that "this committee decides to production and project implementation plans, and at the end of each chapter {3-month} offers companies User expenditures, which scrutinizes, and are accepted headquarters of them; the ministry to you pay for companies , either in quantities of crude calculated at current prices, or cash. "
"But we understand licensing contracts must understand that what you get company from a profit a lump sum of {1.15-6 dollars / barrel by contracts} for each extra barrel when production exceeds 10% of the so-called {the production of foundation}, any production of the field before signing the contract, and, of course, also pay the 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. "
He noted 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," explaining that "the supposed return the product oil is equal price per barrel, and the supposed return 2 = 50% of return, take a full government, "noting," The 50% the second of the yield, or the so-called {yield available}, dividing the 3 door, the first to pay the operating and investment costs incurred by the foreign company, and the second for the payment of wages profitability {to $ 1.15-6 } held by each extra barrel produced above the foundation {}, to be divided in two, a 75% share of the contractor, and the government's stake to 25% {was amended on the share of government partner in 2013 and different ratios of the contract to another}. "
He added, "The third, a remainder of the {yield available} in {3}, and go to the government to be added to the 50% in {2} above; so what received by the contractor or the company is operating and investment costs {4}, in addition to the wages of profitability {5 / a}, less is paid back by companies of tax on profits {35%}, go to the treasury, and receives Iraq 50% of the "supposed to return" {1} + remainder of the yield available {6} + share of government partner {5 / b} + the tax on the profits of the company. "
He continued, "there is no debt to 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 primary and secondary and the work paid to the companies, in addition to the profit of the company, which {1.15- 6} dollars for each extra barrel produced above the foundation {} ".
"The accounts are clear, and the mistakes committed by some confusion on them, and on public opinion vision, is that they calculate expenses like the return for companies, or counted only exports and beat that in the current oil prices, and forget the whole production, Vijrgeon rates do not match at all with reality." noting that "what is consumed internally {refineries, electricity and other} 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 constitutes 15.32% of the total production, which may up to 1,204,92,362 barrel. "
He added, "and this will be the value of what we consume internally 8405, 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 , that the request of the Ministry of Oil work on the revision of contracts and negotiate with the companies, which is what we are doing. "
And the voice of the House of Representatives at its meeting held at its previous paragraph 28 of the Budget Law for the year 2016 for the federal government and the Oil Ministry's commitment to reviewing the licenses of oil rounds decades to amend the terms of contracts in order to preserve Iraq's economic interest and pay increase oil production and reduce costs and find a cost recovery mechanism to fit the prices Alinvt.anthy