Parliamentary Energy: oil companies are required to extend its work to fifty years in exchange for a review of its contracts

by **Ponee** Tue Jan 19, 2016 11:49 am

Revealed the parliamentary energy committee, on Tuesday, the requirement for oil companies to extend their contracts for fifty years, in exchange for the consideration of the review and modify these contracts, warning that the review of these contracts will lead to a "loss of Iraq".

He said the Oil and Energy Committee member Mazen Mezni in an interview with the (long-Presse), "The oil companies want to extend their contracts with Iraq from 25 years to 50 years, as a condition to re-examine the contracts," noting that "these contracts certified by the United Nations and any attempt to review These contracts will lead to the loss of Iraq ".

Mezni added that "the extension of contracts for such a long time would damage Iraq because the owner of the company will look for funds is not seen to the interest of the country".

The Commission on oil and energy in the House of Representatives attacked, in (13 December 2015), the Ministry of Oil because of licensing rounds which it signed with foreign companies contracts, and confirmed that the contract was extended from 20 to 25 years and reduced the government partner's share, while the ministry blamed the high production costs Oil because of those contracts.

The international oil company BP, working in the Rumaila revealed, in (November 10, 2015), to provide international oil companies operating in Iraq proposals to the Iraqi side, to make adjustments to their contracts productivity, indicating that the Iraqi Oil Ministry, demanded to reduce development projects expenses as a result of the deterioration of oil prices.

The Iraqi Oil Minister Adel Abdul-Mahdi confirmed, on 28 August, of the city of Amarah that the government is seeking to reach an agreement with the oil companies to find out their budget plans for cutting back on spending power through 2016.

01.19.2016

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