Iraq Oil Ministry Says New Government Shall Not Cancel Newly Signed Oil Contracts

22 April 2010 -Al Sumaria TV

Iraq Ministry of Oil said that the upcoming government does not have the right to cancel the oil contracts signed with International oil companies at the beginning of this year in order to develop some Iraqi oil fields in the framework of the first and the second bids rounds.

The Ministry stressed that the contracts include penal items that would harm Iraq interests. Sabah Assaidi, Deputy Head of legal section of Iraq Oil Ministry petroleum contracts and licensing directorate said that the contracts include penal sections that impel the Iraqi state to compensate the company over any damages that might succumb if the contract was canceled.

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