Baghdad’s capacity plans under pressure

摘要

Severe financial constraints in Iraq mean production in the central and southern parts of the country is unlikely to rise by more than 100,000 b/d this year, a senior oil ministry official says. Oil minister Adel Abdul Mahdi maintains that production in central and southern Iraq will increase this year by 200,000-400,000 b/d. But under economic strain from the latest fall in oil prices and the cost of the conflict with Islamic group Isis, Baghdad has already asked energy firms developing Iraq’s southern fields to slash their 2016 budgets and limit production growth. The move is designed to limit the cost recovery payments that Baghdad makes to those firms for their development projects under long-term service contracts.