BP Takes More Oil as Payment

By John Lee.

The President of BP Iraq has said that the company has been lifting more crude oil cargoes in the past couple of months, as payment for its work in the Rumaila oil field (pictured).

Michael Townshend told reporters that current production at Rumaila is about 1.4 million bpd and is expected to remain steady this year.

Regarding reports that Iraq may move from service contracts, in which oil firms are paid a set fee, to production-sharing contracts, in which oil revenues are divided, Townshend said the international oil companies had presented the Ministry of Oil with some proposed amendments to their contracts, as requested by the Ministry of Oil, but he declining to comment on whether the Ministry had responded.

(Source: Reuters)