Finance Minister Hoshiyar Zebari said Aovernmth plans to manage emergency funds through sales of oil reserves in advance and payment system for the first time and begin economic reforms to amend the oil contracts with major Western companies.
And between Zebari in a press statement, "It has not yet determined the details of the quantities and value of these sales, known in the oil industry pre-funding but Iraq needs liquidity to fund its military campaign against al Daash To compensate for revenue lost because of falling world oil prices."
Zebari said that "Baghdad also plans to change the way it manages its exploration and production contracts with oil companies such as Royal Dutch Shell, BP and Exxon Mobil."
With this shift will move Iraq for the first time to the production sharing contracts under which the proceeds are split adopt a percentage of the services that you get under which oil companies on a specific fee contracts.
The Iraqi service contracts entered into when oil prices were high, and the mean drop in global oil prices that Baghdad is now paid to the companies much more than if they were operating production sharing contracts.
Zebari said that "the amended contracts in Iraq will know the name of [revenue-sharing contracts."
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