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Baghdad also insists oil deals with foreign firms should be fixed- feeservice contracts.
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Baghdad also insists oil deals with foreign firms should be fixed- feeservice contracts, not production sharing contracts of the type signed by the KRG.
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Iraq toughened its terms in renegotiating the CNPC deal, changing the contract to a set- feeservice deal from the oil production-sharing agreement signed under Saddam.
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They also wanted a clarification about the nature of the deals, which she said looked more like production sharing agreements than pure fixed- feeservice contracts.
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The key threat, however, is that their lower overheads will enable them to offer sharply lower or zero- feeservices, said the sources.