Iraq has increased payments to foreign oil firms by raising the crude oil entitlements they receive under their technical services contracts.

BP and Lukoil both confirmed this week that the payments had picked up in recent weeks but the Russian oil major has warned of headwinds that might slow the pace of upstream growth in Iraq. In the downstream, Iraq faces a potential long-term loss in capacity as Islamic State (IS) resumed its attacks against the Baiji refinery, the country’s largest oil refining complex. (CONTINUED - 2170 WORDS)