International Oil Companies (IOC's) in Iraq have announced to the oil and gas community that they are planning to place a series of delays to projects in order increase overall crude oil production and output.
Since IOC investments have been repaid by the Iraq government with crude oil, many have not been paid as the Iraq government has struggled to produce enough oil to pay them back due to the low price of oil.
Below is the list of International Oil Companies and the budgetary cuts they are planning to make:
BP has been asked to cut its 2016 budget for Rumaila to $2.48 billion, and to target output of 1.4-million barrels per day. (BP proposed a budget of $3.25 billion for 2015).
Lukoil is expected to cut spending to $1.26b illion and aim for a production of 400,000 bpd at West Qurna 2 project; it proposed a 2015 budget of $2.1 billion.
Eni should cut spending to $1.62 billion and aim for production of 351,000 bpd at Zubair.
ExxonMobil was asked to slash spending to $878 million and aim for output of 379,000 bpd at West Qurna 1. Last year, according to Reuters, it “insisted” on spending $1.8 billion.
Shell should cut spending to $855 million and aim for 200,000 bpd from Majnoon. Last year, it proposed a budget of $1.5 billion.
Petronas should reduce costs to $712 million and target production of 100,000 bpd at Garraf.