Iraq will sell crude oil on prepay

by **silkysand** Wed Apr 01, 2015 8:15 am

Baghdad-Iraq-Presse -29 March / March: Finance Minister Hoshyar Zebari revealed the quest for the Iraqi government to sell quantities of oil reserves on prepay.

Zebari said, in a press statement, on Saturday evening, that "the government is planning to sales of oil reserves, will also begin economic reforms to amend the oil contracts with major Western companies."
"We have not yet quantities details and the value of these sales, known in the oil industry pre-funding is determined, but Iraq is in need of liquidity to fund its military campaign against al Daash terrorist To compensate for the revenues from oil, which fell due to insecurity and low price of crude oil in the world market losses."

Zebari pointed out that "Baghdad also plans to change the way it manages its exploration and production contracts with oil companies (such as Royal Dutch Shell, BP, Exxon), you'll learn the amended contracts on behalf of the revenue-sharing contracts."

With this shift will move Iraq for the first time to adopt a production-sharing contracts, under which the division of revenues is a percentage of the services that you get under which oil companies on a specific fee contracts.

Iraq seeks to raise its oil exports by adding 550 thousand barrels per day after the recent agreement between the central government and the Kurdistan region.

This is the first procedure of its kind to be resorted to when Iraq's oil reserves, within the funds in an emergency management procedures, as a result of the fiscal deficit, due to lower oil prices to below $ 50 a barrel and start Altakecv.anthy policy (1)

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