With low prices ... How will Iraq pay 3 billion to oil companies within three months?

[Mary B]

With low prices ... How will Iraq pay 3 billion to oil companies within three months?

 02/04/2020

 

  

The information / translation ...
A report of the French Press Agency stated that with low oil prices, the Iraqi oil sector faces a triple threat of declining revenues, the risk of deteriorating production and causing problems in the country's future exports.
The report, which was translated by the information, stated that "the collapse of world oil prices means that the monthly crude oil revenues for Iraq have decreased by half from February, about 2.99 billion dollars only in March."
He added that " Iraq, the second largest producer of crude oil in OPEC, is paying oil companies $ 3 billion every three months to extract crude, and with low prices, the Iraqi government is looking closely to reducing costs and delaying payments."
He continued that "Basra Oil Company asked last week from the World Trade Organization to accept a delay in six months of payments and reduce work budgets by 30 percent, while the assistant director of the Basra Oil Company and the signer of the request letter, Khaled Hamza Abbas, said that" the delay in the first quarter payments is necessary and we asked Also the delay in the second quarter in anticipation of this, but the oil companies have not responded yet.
The report continued that "the international oil companies take independent measures, and according to internal messages, Exxon Mobil, the largest oil company, asked secondary contractors to reduce the total cost with other companies that requested discounts from suppliers."
A source with the main operator in the south said that "the international companies are suffering from financial hardship", the problem does not stop there, as international oil companies cost IraqIn a quarter of every year, the cost of extracting oil and the Iraqi government pays them oil for that, which means, according to an Iraqi official, that "with low crude prices, the Iraqi government will have to use all of its crude and will have nothing to sell."
It is reported that Iraq depends on oil revenues for more than 90 percent of the country's expenditures. His budget for 2020 was based on a barrel price of $ 56, more than double the current price. Ended / 25 z

 

https://www.almaalomah.com/2020/04/02/466174/

[ronscarpa]

Thanks Mary B ...  Ron

[horsesoldier]

They probably won’t pay out at all, put some feeble excuses out there tell them all, deferred payments to “ in the near future “