Iraq will pay operators nearly $2US billion in arrears in April for the 2015 financial year.
BP, Shell , ExxonMobil, Eni and Lukoil will all receive payments as they currently provide services under service contracts: meaning they have an agreed fixed fee for additional crude oil that is produced.
The drafting of new contracts, which will occur mid-year, will ease some pressure on the Iraqi economy, says Deputy Oil Minister, Fayadh al-Nema. Some cost-cutting suggestions such as utilising the government owned Iraqi Drilling Company instead of international operators, which means replacing foreign contractors with the local workforce.
Nema also notes Iraq's total output in 2016 will slight mainly due to less foreign investment due to lower global oil prices.
However, a multi-billion dollar project in the Southern region of Iraq currently called the "Integrated South Project" in partnership with PetroChiba and ExxonMobile will mean new oil pipelines will be constructed, storage facilities as well as a seawater project that will utilise water from the gulf to provide water pressure during oil recovery.
Foreign investment in the Artawi and Nahr Bin Umar oilfields will help strengthen infrastructure and provide additional revenue to meet financial demands from investors.
Additionally Mr. Nema also said the Deputy of Oil Minister is working with BP to upgrade and maintain a water injection facility in Garmat Ali which is north of Basra to provide water for oilfields in Rumaila and Zubair.