Iraq Oil Output Growth Seen Slow by BP, Lukoil on Low Prices - Bloomberg Business

Iraq Oil Output Growth Seen Slow by BP, Lukoil on Low Prices - Bloomberg Business:



"Growth in Iraq’s oil production capacity may slow as lower crude prices hurt the ability of OPEC’s number two producer to pay international oil companies for work there, officials from BP Plc and OAO Lukoil said.



Lukoil sees a “significant reduction” in the growth rate of Iraqi output capacity in 2016 and 2017 due to the decline in crude price, Gati Al-Jebouri, senior vice president at Lukoil Overseas, said in Abu Dhabi on Tuesday. BP’s ability to meet its production targets depends on the government approving the company’s proposed investment plans, said Michael Townshend, the company’s regional president for the Middle East.



The slump in global crude prices over the past year has cut the Iraqi government’s income even as it battles Islamic extremists that have seized parts of the country. That risks sidetracking Iraq’s efforts, after decades of conflict and sanctions that choked investment, to boost crude production with the help of international companies."



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