Iraq has struggled to reimburse foreign firms for developing the country’s nine largest fields because of lower oil prices, forcing Baghdad to renegotiate terms. The Iraqi oil ministry has asked foreign companies to keep oil output steady this year and to cut costs. This means that the companies will invest only in maintaining current output and not in increasing production until a sustainable cost recovery process is put in place. Plateau output targets at each of the fields will not change, but the agreed dates for achieving them are likely to be postponed (AGM, 5 February, p5).
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