Iraq's southern oil sector is at a crossroads. In the federal government-controlled south, producing oil companies are seeing returns, already tight under the oil ministry's service contracts in the best of circumstances, eroded by bureaucratic and infrastructure delays - a long-standing problem and one acknowledged in some detail by US Exxon Mobil earlier this month (EIF Mar. 13'13). As these concessionaires discuss lowering agreed plateau rates at the country's main southern fields (Rumaila, West Quma-1 and -2, Zubair and Majnoon), working out how to "keep the contract whole," at least in line with original terms and returns on paper, is critical.
展开▼
