Iraq plans to sell crude oil on prepay

Zebari said, "The government is planning for oil sales reserves, will also begin economic reforms to amend the oil contracts with major Western companies."

"We have not determined yet quantities details and the value of these sales, known in the oil industry by pre-funding, but Iraq is in need of liquidity to fund its military campaign against ISIS terrorists to compensate for the revenues from oil, which fell due to insecurity and low price of crude oil in the world market losses."

Zebari pointed out that "Baghdad also plans to change the way it manages its exploration and production contracts with oil companies (such as Royal Dutch Shell, BP, Exxon), and will name the amended contracts as the revenue-sharing contracts."

With this shift , Iraq will move for the first time to adopt production-sharing contracts, under which the division of revenues by a percentage of the services that oil companies would get a specific fee contracts.

Iraq seeks to raise its oil exports by adding 550 thousand barrels per day after the recent agreement between the central government and Kurdistan region north of Iraq.

This is the first procedure of its kind to Iraq resort to its oil reserves, within the funds in emergency management procedures, as a result of the fiscal deficit, due to lower oil prices to below $ 50 a barrel and start a policy of austerity.