DUBAI, May 18 (Reuters) - British oil major BP hasagreed with the Iraqi oil ministry to cut this year'sexpenditure on development work at Rumaila oilfield to $2.5billion from $3.5 billion, an industry source familiar with thematter said on Monday.
Oil companies have proposed millions of dollars of cuts indevelopment spending in Iraq, a senior oil ministry officialtold Reuters in March, after Baghdad told them low oil pricesand its fight against Islamic State had made payments difficult.
The cut in budget spending will have no impact on productionfrom Rumaila oilfield, Iraq's largest. Output is expected toremain steady at around current levels of about 1.4 millionbarrels per day in 2015. (Reporting by Rania El Gamal; editing by Susan Thomas)