Iraq seeks to shift impact of OPEC cuts onto oil companies
Oil Ministry effort to scale down payment obligations could cause conflict with IOCs and discourage new energy investment.
Ihsan Ismaael (second from right), then-acting director general of the Basra Oil Company, tours the Siba gas field with Bassim Abdulkarim, then the Basra Oil Company's deputy director general for production, on Jan. 17, 2019. (JASSIM AL-JABIRI/Iraq Oil Report)
Iraq's Oil Ministry is attempting to displace some of the financial burden associated with its OPEC-related production cuts onto international oil companies (IOCs).
The ministry's move to scale down its payment obligations, which was confirmed by multiple industry officials, is likely to meet resistance from IOCs and could send a chilling message to prospective energy sector investors at a time when Iraq needs billions of dollars' worth of foreign financing for projects to boost domestic gas, electricity, and fuel supplies.
This content is for registered users. Please login to continue.
If you are not a registered user, you may purchase a subscription.
If you are not a registered user, you may purchase a subscription.
