BP, Exxon submit Iraq deal plans

http://www.marketwatch.com/news/story/bp-exxon-submit-iraq-deal/story.aspx?guid=%7B5F7F5511-DDE7-41AE-B088-DB1CCFD5FADD%7D&dist=msr_2

AMMAN (MarketWatch) -- After several months of negotiations and pressure from the Iraqi government, BP PLC (BP:bp plc sponsored adr

XOM 89.80, -0.90, -1.0%) have finally submitted proposals to the Iraqi oil ministry on technical services contracts to boost production at Iraq's prized oil fields, sources close to the Iraqi ministry said Tuesday.
Other oil majors, which have been negotiating similar deals with Baghdad, haven't yet submitted their plans, but they would follow suit, according to these sources.

Iraq's Oil Minister Hussein al-Shahristani has threatened to cancel these technical services contracts, or TSC, if they are not signed in June. The TSCs are designed to boost Iraq's crude oil production in producing oil fields.

BP and Exxon Mobil's proposals include suggestions on how Iraq would pay them back for their services and the costs of equipment. The Iraqi oil ministry needs to approve these proposals before signing the contracts. Iraqi oil officials have said that each TSC would cost around $500 million.