Iraq will pay cash to oil companies, says minister

Nicosia: Iraq will pay the winners of a tender to boost production from existing oil fields in cash, Oil Minister Hussain Al Shahristani told Al Arabiya television.

Paying in cash rather than physical oil will ensure that the nation's natural resources remain the property of the Iraqi people, Shahristani said in an interview with the Dubai- based television station.

The oil companies said they preferred to be paid from oil production, he said.

Iraq will release on June 30 details of the contracts to be offered and the fields, Al Arabiya said. Shahristani described the contracts as "service agreements".