Iraq’s government and the foreign firms developing the nine largest oil fields in the south of the country are pre-paring to renegotiate their technical service contracts. Lower oil prices have severely curtailed Baghdad’s abil-ity to fully reimburse the costs of the companies and pay their fees for incremental output(WPA,13 February,p3). The oil ministry says it has no intention of converting the agreements that it awarded to the companies in 2009-10 to produc-tion-sharing contracts(PSC).But some changes that the ministry is considering could leave the con-tracts looking more like PSCs than technical service agreements.
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