Iraq: Iraq Says Crude Price Fall Prompts Review of Oil Contracts

Mar 2, 2015 | Reuters
View Original

Iraq said on Monday it is reviewing its oil production agreements with international firms because falling crude prices meant that the financial cost of existing service contracts were too high to bear.

Oil Minister Adel Abdel Mehdi said Iraq is negotiating to restore its state share in oil production contracts with international companies to 20-25 percent, after it was reduced in recent amendments to around 5 percent.

Last year, Iraq signed revised deals with Britain's BP , Italy's Eni and Russia's Lukoil, cutting final production targets and also lowering the share of the state partner to 5 percent from 25 percent.