BAGHDAD, Aug 22 (Reuters) - Iraq wants to review contractswith oil companies to cut the fees that the firms receive whencrude prices are low, the OPEC nation's new oil minister said,standing by a demand made by his predecessor.
Oil Minister Jabar Ali Al-Luaibi conveyed his position at ameeting on Monday in Baghdad with BP's head in Iraq,Michael Townshend, the ministry said in a statement.
The minister also discussed increasing oil and gas outputfrom BP's giant Rumaila field in southern Iraq.
Iraq was in talks with foreign oil companies to link thefees they charge for developing their fields to oil prices andhave them share the burden when markets go down, former oilminister Adel Abdul Mahdi told Reuters in January.
Iraq generates 95 percent of its public budget from oilsales. It has service agreements with companies including CNPC, BP, Shell, Eni, Exxon Mobil and Lukoil, which get paid for the extrabarrels produced at fields awarded to them through a biddingprocess.
Current service agreements with oil companies are strainingIraq's budget as the government pays them a fixed fee forincreasing production at ageing fields. Its own revenue droppedas oil prices have more than halved compared to 2014.
(Reporting by Maher Chmaytelli; Editing by Dale Hudson)
BP (BP.)
