IRAQ HAS PAID $9 BLN
Iraq has paid foreign oil companies $9 billion in remaining arrears for 2014 and was paying outstanding fees for 2015 in stages until the beginning of next year, its oil minister said.
Adel Abdel Mehdi wrote in the al-Adala newspaper that the ministry would study with foreign oil companies ways to reduce costs and link them to oil prices.
International firms, such as BP, Royal Dutch Shell, , ExxonMobil, Eni and Lukoil operate in Iraq's southern oilfields under service contracts, whereby they are paid a fixed dollar fee for production.
This means that with the drop in oil prices over the past year, the amount of crude needed to pay the companies has roughly doubled.
The arrangement has put Baghdad's coffers under immense strain, as a dramatic drop in crude prices since last summer has hammered the revenue it receives from selling oil.
Oil companies have already proposed millions of dollars of budget cuts.
Abdel Mehdi said the OPEC member's southern crude oil exports would exceed 2.750 million barrels per day (bpd) through the end of 2015, which is the estimated volumes for this year's budget.
Iraq's southern oil exports rose in July to a record average of 3.064 bpd from 3.02 million bpd in June, following Baghdad's decision to split crude stream into two grades, Basra Heavy and Basra Light, to reduce quality issues. Some companies increased production following the move.
The minister said the split has helped to boost Iraqi crude exports by around 200,000 bpd - 300,000 bpd.
Lower oil revenues are straining Iraq's budget, as it fights an Islamic State insurgency that controls large swathes of territory in its north and west.
|November, 19, 11:50:00|
|November, 19, 11:45:00|
|November, 19, 11:40:00|
|November, 19, 11:35:00|
|November, 19, 11:30:00|
|November, 19, 11:25:00|
U.S. DT - The sum total in September of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a net TIC outflow of $29.1 billion. Of this, net foreign private inflows were $23.5 billion, and net foreign official outflows were $52.7 billion.
U.S. FRB - Industrial production edged up 0.1 percent in October, as a gain for manufacturing outweighed decreases elsewhere. As a result of upward revisions primarily in mining, the overall index is now reported to have advanced at an annual rate of 4.7 percent in the third quarter, appreciably above the gain of 3.3 percent reported initially.
WNN - "nuclear energy is a "mature, low greenhouse gas emission source of baseload generation that could make an increasing contribution to global development based on low-carbon energy supply".
ARAB NEWS - Saudi Arabia has shown investment interest in Pakistan’s largest coastal refinery, a multibillion-dollar project being set up at Khalifa Point, near Hub, Balochistan, officials have confirmed.