Lower oil prices hit Iraqi production growth
Iraq is struggling to make payments to IOCs working in the country
Iraq’s production levels are likely to remain flat for the next 2 years, as falling oil prices take their toll on the country’s investment plans, according to senior oil officials.
Iraq is struggling to repay IOCs for services provided in the country in 2014 and 2015, as oil prices remain low.
Approval for tenders to build new crude oil facilities in Iraq are reported to have been delayed by up to six months as a result of the price dip.
IOCs operating in the country have been asked to postpone projects that had been planned for this year and this will lead to slower production than previously anticipated.
"The priority now is to maintain steady production. You will not be seeing any incremental increases in 2015 or even 2016," an oil executive working in southern Iraq told Reuters.
"From where? Certainly not from the south. Who will increase?"
Iraq had intended to raise production levels to 4mn bpd by December 2015, but that figure now looks unlikely.