Monday, September 27, 2010Iraq looks to oil companies to finance projects export
Baghdad : asked Iraq international oil companies that won contracts to develop oil fields vast whether they were prepared to finance infrastructure projects in the field of export.
Abdel Karim said Allaibi deputy oil minister said on Sunday that his ministry is looking at all options available for financing infrastructure plans in the field of export , including the question oil companies to contribute to the financing or through the presentation of projects in the form of contracts for the installation , operation and transfer of ownership .
He told Reuters: "The major projects and pipelines need to billions So now pondering the question of financing , either through model construction , operation and transfer of ownership or the contribution of oil companies in financing, or both. "
She asked the Ministry of Oil companies asked if was ready "to participate in the study , design, implementation and funding process as a joint intervention in which all contracts related to the matter " , according to a copy of a letter sent to oil companies in June.
The letter said that the plan of delivery of crude oil extracted from oil fields in the framework of the two rounds of the auction the first and second last year include the pipelines towards the port of Basra to Turkey in the north and Syria in the West.
Allaibi said , " We received so far response from four or five companies. "
He added that the contribution of oil companies in the project of exporting the crude oil will be similar to the plan will cost billions of dollars to inject the southern oil fields in Iraq with water.
And occupies the Exxon Mobil oil giant American leader among the oil companies that won contracts to develop fields in the south to coordinate the initial studies for the injection project water is expected to exceed the cost of ten billion dollars.
The will finance companies the project in principle and will pay Iraq the cost of the revenues oil .
But Iraq, which is expected to reach the deficit in the budget for the current year at $ 19.6 billion is missing money. Is in dire need of billions of dollars to rebuild its infrastructure debilitating after years of war , economic sanctions and lack of investment.
The failure of Iraq to attract the huge investments needed to restructure its infrastructure crumbling and pipelines export dilapidated that obstacle prevent him from becoming one of powers the major oil in the world.
Iraq signed a series of contracts with oil companies in a bid to boost oil production capacity to 12 million barrels per day in seven years from 2.5 million barrels per day currently .
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