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Iraq prepares to amend its existing oil contracts

In light of the oil price slide, Iraq’s Oil Ministry is preparing to review contracts with foreign oil companies.
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BAGHDAD — Oil revenues accruing from oil field development and production in Iraq no longer match the revenues made before the licensing contracts the Ministry of Oil signed in 2009-2010. The Iraqi government will be unable to reimburse the foreign oil companies’ dues, which amounted to $20 billion in 2015, if global oil prices continue to decline.

The financial crisis in Iraq, in addition to the cost of the war against the Islamic State and the increased accusations of corruption, drew attention to Iraqi oil field development contracts with foreign companies that were made when Nouri al-Maliki was still prime minister. Political parties and blocs are demanding to have these contracts reviewed or annulled under the pretext that they are costing Iraq major financial losses.

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