Iraq Oil Partners Seek Contract Changes to Boost Output - Bloomberg Business:
"International oil companies could boost production in Iraq beyond current targets if production contracts were changed to give more incentives for investment, according to BP Plc and Royal Dutch Shell Plc.
Companies working in the country have proposed that the government change contracts from the current service-fee model to be closer to production sharing agreements, Michael Townshend, BP’s regional president for the Middle East, told reporters in Abu Dhabi on Tuesday. The suggestions were made earlier this year amid talks about development budgets needed to operate Iraq’s oil fields next year, he said.
Shell would need “a different commercial balance” to achieve full potential for its development of the Majnoon oil deposit, Maarten Wetselaar, the company’s executive vice president for integrated gas, told reporters in Abu Dhabi. “It’s a bit of an affront to its potential to only produce 225,000 barrels a day from it, you could double or triple that by investing in it.”"
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