Iraq asks oil majors to shorten service contracts

[maddezmom]

Source: Reuters

DUBAI/BAGHDAD, July 21 (Reuters) - Iraq has asked international oil companies to revise proposals for technical service contracts worth about $3 billion that aim to boost the country's oil output by about a quarter.

The revisions could delay the signing of the six contracts -- worth around $500 million each -- until August or September, an executive at one oil company said on Monday.

Iraq's Oil Ministry said on June 24 it wanted the deals signed within a month. Oil Minister Hussain al-Shahristani has expressed frustration over delays in finalising the contracts.

But Baghdad has asked oil majors for revised proposals for contracts that will last just one year to 18 months, rather than the two years previously stipulated, executives at two of the oil companies said.

The short-term deals are being negotiated by Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz); Shell in partnership with BHP Billiton (BHP.AX: Quote, Profile, Research, Stock Buzz); BP (BP.L: Quote, Profile, Research, Stock Buzz); Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz); and Chevron (CVX.N: Quote, Profile, Research, Stock Buzz) in partnership with Total (TOTF.PA: Quote, Profile, Research, Stock Buzz). A consortium of Vitol, Dome and Anadarko (APC.N: Quote, Profile, Research, Stock Buzz) is negotiating the sixth contract.



Read more: http://www.reuters.com/article/marketsNews/idUSL2123055620080721