IRAQ: ‘ Repays $9-billion in arrears for 2014 to foreign oil companies ‘

#AceFinanceReport – IRAQ:Aug.25: Iraq has paid foreign oil companies $9 billion in remaining arrears for 2014 and will pay outstanding fees for 2015 in stages until the beginning of next year, Oil Minister Adel Abel Mehdi said.

He added that the ministry will work with foreign oil companies to find ways to reduce and link costs to oil prices. International firms including British Petroleum, Royal Dutch Shell, ExxonMobil, Eni, and Lukoil operate in Iraq’s southern oilfields under service contracts through which they are paid a fixed dollar fee for production.

That means that with the drop in oil prices, the amount of crude oil needed to pay foreign firms has roughly doubled. Oil companies have already proposed millions of dollars of budget cuts in response to the price drop.

[Reuters, 8/25/2015]

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