By SPA
Baghdad : Iraq’s cabinet has given the green light to the Oil Ministry to sign agreements with international oil companies to help increase the nation’s crude output, ap quoted a ministry official as saying Wednesday.
The two-year deals, known as technical support agreements, or TSAs, are designed to develop five producing fields to add 500,000 barrels per day to the country’s current 2.4
million barrels per day output.
In Vienna, Iraq’s Oil Minister Hussein al-Shahristani said that Iraq intends to compensate these companies with crude oil rather than in cash, the Dow Jones Newswires reported on Wednesday.
Speaking to reporters as he arrived for a meeting of the Organization of Petroleum Exporting Countries, al-Shahristani said the Oil Ministry was still working on the compensation details with the Development Fund of Iraq, controlled by the U.S. and the U.N.
According to the Oil Ministry official, BP will submit a proposal for the Rumaila oil field, Chevron for West Qurna stage 1, Exxon for Zubair, and Shell for Missan and Kirkuk.
Iraq’s average production was 2.4 million barrels per day in January while exports stood at an average of 1.92 million barrels per day. December’s exports averaged 1.81 million barrels per day.