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Ministry of Oil Says Iraq Development Costs Will Go Down to $9billion

Foreign oil companies in Iraq have reduced development costs by over half than was previously budgeted: from $23 billion to $9 billion.

Foreign oil companies in Iraq have reduced development costs by over half than was previously budgeted: from $23 billion to $9 billion.  

The downturn of crude oil prices which has largely affected government revenue, combined with the war against the Islamic state has meant Iraq faces a historical economic crisis.  

The Oil Ministry has decided to seriously revise oil and gas development plans and has decided to postpone any scheduled projects that will not need further funding. 

“In 2016, the companies estimated costs at $23 billion but we entered into complex negotiations … and were able to reduce them to just over $9 billion whilst preserving production and development plans,” Abdel Mahdi said, further commenting that $13.6 billion were paid to companies in 2015 and $13.1 billion the prior year.

 

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