Exxon Mobil sets new ceiling for its production in Iraq

“The new target for Exxon is operating in West Qurna 1 that will be from 1.6 to 1.8 barrels of oil per day or less than one-third from the targeted production agreed with the company and 2.8 million barrels per day ,” Iraqi Minister of Oil , Abdul al-Karim al-Laebi said in a statement received by “Shafaq News”.

Laebi confirmed that the two sides will conclude the agreement on a new production ceiling very soon.

The announcement comes after months of discussions between Baghdad and the major oil companies to renegotiate contracts signed with them.

Despite that the companies are initially committed to the objectives of productivity in 2008 and 2009 , but they soon realized that they fail to fulfill their commitments on agreed production levels after facing a problem in the infrastructure of the Iraqi oil installations and slow bureaucratic procedures .

Iraqi Minister of oil attributed the slow progress of work at Exxon at West Qurna to the need to drill wells to pump water to offset the low pressure in the areas of oil reserves.

This announcement reveals the challenges faced by international oil companies in trying to raise the levels of oil production from Iraq's huge southern oil fields.