«Lukoil» Russian pledges to increase investment in Iraq's oil sector with the repayment of the debt Baghdad

«Lukoil» Russian pledges to increase investment in Iraq's oil sector with the repayment of the debt Baghdad



Jun 04, 2016

Vienna (Reuters) - Vagit Alekperov, CEO of the company «Lukoil» Russian Iraq surprised the big oil companies positively, quickly begin to pay off the accumulated debt, and pledged to increase investments, allowing for the country - the second largest oil producer in the «OPEC» - preservation on strong growth in production. Iraq's production has jumped 50 percent since he signed contracts of tens of billions of dollars with major companies, including «Lukoil» and »BP» and »Exxon Mobil» at the end of the last decade to help develop giant fields.

But production growth to around 4.5 million barrels per day delayed from what was originally planned, with the companies repeatedly complained of red tape and the security situation and increasing debt.

It slowed repay debt owed to big companies for their investments during the past two years more, with the sharp decline in oil prices. But Alekperov, CEO and big contributor to «Lukoil» said the situation began to change, and that Iraq reimburse dues companies are very active. Because of the decline of oil Iraq is expected to face a funding shortfall worth $ 17 billion this year, was not able to measure more funding, according to the International Monetary Fund. The funding for the war against al «Islamic state» burden else.

Iraq reached in May / Yar to a credit facility agreement (an existing loan) worth $ 5.4 billion with the IMF could allow him to get the other international aid worth 15 billion dollars over three years. Alekperov said «know about the fund talks and we know that the Fund is required to pay dues to Iraq contractors.» He said «We hope to repay all debt by November, so that we can start a new investment cycle before the end of the year. Our own production in Iraq remains as it is .. 1.2 million barrels per day. »

On the other hand through Alekperov expressed the hope that Tehran announces new exploration contracts with companies Kabry- details that await this for more than Aamin- before the end of 2016 in order to stimulate investment. He said that «Lukoil» willing to invest billions in the Islamic Republic.

Alekperov said he expected continued production growth in countries such as Saudi Arabia, Iran and Iraq, while the «OPEC: the least affluent members, and who face the highest Tcalf in production, will find it difficult because of the economic situation.

The «Nigeria and Venezuela is capable of increasing production at the moment.»

Alekperov said that the sharp decline in oil prices led to a significant decline in investment throughout the world. He said «the consequences will be dire. Higher prices in the future may be too much. »

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