"Effect of cost recovery in service contracts for oil licensing tours"

Abstract

License rounds (service contracts) are a great step to develop the old and new oil fields in terms of increasing production and keeping pace with the scientific development in the oil industry and keeping abreast of the progress in this industry through contracting with international companies with good experience and long in oil extraction operations. The Iraqi cadres through its participation in the process of development and keep pace with the work of these companies to create a scientific basis is able to operate itself in the future through the practical experience gained from working in these companies.The problem of the research was the different accounting methods used to address the capital and operating costs under the service contracts in the extractive oil companies and the ways of recovering those costs, and the mechanism in which the process takes place.The aim of the research is to explain and analyze the concept of cost recovery and the mechanism in which the recovery process takes place, and to determine the period of recovery of costs incurred on oil wells for service contracts.The research also gains its importance by discussing the subject of licensing rounds under oil service contracts and the mechanism in which these costs are recovered