Iraqi oil minister asks foreign companies to increase oil production, exports

Iraqi Oil Minister Jabbar Al-Luaibi on Tuesday asked foreign oil companies to increase crude oil and natural gas production and exports.

Al-Luaibi, who took over office a month ago, held a meeting in Baghdad with oil companies operating in Iraq.

During the meeting he said that the ministry “supports foreign oil companies’ work in order to improve the production and export rates of crude oil and gas”.

Iraq’s economy was hit hard after the sharp fall of crude oil revenues which constitutes 90 per cent of the country’s public spending.

Al-Luaibi said his meeting with the foreign oil companies aims to review contracts with them to cut the fees that they receive when crude prices fall.

In 2009, Iraq signed deals with oil giants such as CNPC, Shell, Eni, ExxonMobil and Lukoil to develop the country’s aging fields in exchange for a fixed fee.

Iraq produces about 4.6 million barrels per day of crude oil and this year started exporting liquefied petroleum gas and natural gas condensates.