FINANCIAL NEWS

Iraq, Exxon reach deal on oilfield payments

12 Mar 2012

(MENAFN) An Iraqi official said that the government of Iraq agreed to provide Exxon Mobil with oil payments for its work on the West Qurna-1 oilfield, reported Reuters.

The official added that the deal comes after months of negotiations between the two parties that were related to the contract terms.

On the other hand, he said that Exxon and minority partner Royal Dutch Shell spent USD910 million on the oilfield in 2011, and were repaid USD470 million in cash.

It is worth noting that as cash payments are more difficult to arrange, oil firms working in Iraq prefer to be compensated for capital expenditure and service fees in oil.

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