Iraq proposes Deferred Payment to CNPC

By John Lee.

The head of the state-run Maysan Oil Company (MOC) has told Reuters that China National Petroleum Corporation (CNPC) can go ahead with plans to double output at Halfaya (pictured) to 400,000 bpd if it agrees to be reimbursed when the additional oil is actually produced.

Adnan Noshi denied Iraqi media reports that the current oil prices of below $30 a barrel may force Halfaya to close, saying that the cost of extraction at Halfaya is $15 per barrel.

The news agency also quotes Oil Minister Adel Abdel Mahdi [Adil Abd Al-Mahdi] as saying that Iraq wants foreign oil companies to cut spending as the nation tries to narrow a budget gap caused by lower oil prices.

(Source: Reuters)

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