Iraq owes more than $20 billion to oil companies

by **Ponee** Wed Mar 04, 2015 10:51 am

Iraqi Oil Minister Adel Abdul-Mahdi said on Sunday that his country owes more than $20 billion to the oil companies operating in the south, news agencies report.

He told journalists at a press conference that in 2014 Iraq paid what was owed for 2013 and delayed other payments. "On top of that, there's what we owe for 2015," he said.

Besides a budget allocation of close to $12 billion to pay what is due, Mahdi said that he planned to ask the government to issue the same amount in treasury bonds. "Fulfilling those commitments is important to our relationship with these companies and the future of the country's oil industry."

Iraq's 2015 budget is based on an average oil price of $56 a barrel. "There will be sanctions if we do not pay these sums," said the minister. "The companies will reduce their production."

He said that he expects the price of crude oil, which dropped to a six-year low in January, to continue to recover. "I do not think they [the prices] will return to their former levels immediately... We expect them to rise more, probably to $64 or $65 per barrel."

Brent North Sea crude, the global benchmark, tumbled to $45 per barrel at the beginning of the year, less than half the level reached six months earlier. It surged to $62 on Friday.

https://www.middleea...o-oil-companies

by **Ponee** Wed Mar 04, 2015 7:04 pm

Abadi economic adviser: Budget approved the payment of oil companies vouchers or treasury bonds

Long-Presse / Baghdad

Economic Adviser to the Prime Minister, confirmed the appearance of Mohammed Saleh, said Wednesday that the federal budget for 2015, the current law authorized the Minister of Finance to issue money orders treasury or financial bonds to oil companies operating in Iraq, not to exceed a total of 12 billion dollars, as he emphasized that the duration of issuance and interest incurred by Mitroctan the Ministry of Finance.

He said the appearance of Mohammed Saleh said in an interview to the (long-Presse), said that "Article 34 of the General Budget Act of the current 2015 included the benefits of oil companies, and authorized the Minister of Finance, at the request of the Prime Minister, or the oil minister, the issuance of treasury remittances or securities , when needed, to cover the entitlements of those companies. "

Saleh added that "the sum of those transfers or bonds, should not exceed 12 billion dollars, and one issued or several versions during the current 2015," adding that "it means that the benefits of oil companies would have guaranteed vouchers treasury or securities pay it, an interest rate After the non-specific. "

He continued economic advisor to the prime minister, that "the duration of Alasaddaria and interest resulting from them, Mitroctan the Ministry of Finance, the lack of detail in the budget on them," adding that it "is not yet known whether the duration of one year or several years, and the amount of interest arising from them."

The Oil Minister Adel Abdul-Mahdi, has confirmed in a press briefing, the first Monday, (second from March current 2015), that the decline in oil prices led to reduced payments of foreign oil companies that had accumulated since 2013 to the tune of more than $ 20 billion, indicating The federal budget allocated nearly 11 billion and eight million dollars, to cover part of those payments, and that the ministry is working on issuing treasury bonds worth 12 billion dollars to cover the remaining amount.

It is noteworthy that the Parliamentary Committee on Oil and Energy, confirmed in (26th January 2015), that Iraq owes to international companies operating in the oil fields, to 32 trillion dinars.

Iraq relies on Finance's balance, estimated at almost entirely on oil by up to more than 90 percent.

http://goo.gl/wH5w7U

Iraq owes more than $20 billion to oil companies

Iraq owes more than $20 billion to oil companies

Iraqi Oil Minister Adel Abdul-Mahdi said on Sunday that his country owes more than $20 billion to the oil companies operating in the south, news agencies report.

Re: Iraq owes more than $20 billion to oil companies