Baghdad has reached “agreements with IOCs to compensate them in-kind” for enforced output cuts, Iraq’s Deputy Oil Minister Hamid Younes this week told local media.

Almost 80% of Iraq’s oil production is from IOC-operated fields under the terms of Technical Service Contracts (TSCs). While this grants the Ministry of Oil final say over development programs, adjusting individual field costs and output – and by extension the often-criticized small margins for operators – the terms make it difficult for Iraq to implement Opec cuts. (CONTINUED - 210 WORDS)