Iraq Oil Minister, Adel Abdel Mehdi, announced that they have paid foreign oil companies $9 billion for the outstanding payments due for 2014, and they will pay the money due for 2015 in stages throughout the year.
In the local Iraq newspaper 'al-Adala' said he wants to work International Oil Companies to find ways to reduce costs and link them to oil prices.
International firms, such as BP, Royal Dutch Shell, , ExxonMobil, Eni and Lukoil operate in Iraq's southern oilfields under service contracts, whereby they are paid a fixed dollar fee for production.
This has a serious effect on the revenue the Iraqi Government can make, as the drop in oil prices over the past year has made huge inroads into the profits generated from selling oil, especially when the costs remain the same.
The lower oil revenues and generating revenue is also putting major constraints on their defense budget and the ability to fight the ISIS who currently control large sections of territory in Iraq's north and west.