
Schlumberger won a contract worth $ 480 million to drill 96 oil wells in southern Iraq for the Basra Oil Company and Exxon Mobil, which operates the giant West Qurna 1 field, with partners from Iraq, Japan, Indonesia and China.
West Qurna 1 is one of the largest oil fields in the world.
Although more than two months have passed since this news, it is important to know how to increase the profits of oil services companies due to the drop in oil prices, which will be explained in the following points:
How to increase the company’s profits ?
1- Low oil prices do not provide sufficient cash resources. Therefore it is better to employ the local workforce, Because their wages are relatively low with the wages of expatriate workers.
2 – The absence of travel costs for Iraqi workers, As they mainly reside inside Iraq, Their ease of movement to and from the oil sites, and their quick access to work sites.
3- Coronavirus risks, The global health situation, And new restrictions imposed on travel between countries, Which represent an additional cost for the company to bring in non-local employees.
4- The largest segment in Iraq is the youth group, And the age group between 22 and 40 years, Who represent more than 50% of the Iraqi population, The majority of them are graduates of colleges of engineering & they are able to learn new skills and run oil jobs.
How will it help the Iraqi economy and make it healthier?
1- Pumping cash liquidity to the various commercial sectors in Iraq:
It is clear that in the case of hiring local workers, The Iraqi employee who works for oil companies will spend part of his salary in the Iraqi market, By purchasing his basic needs or even investing some of his money is in various projects inside Iraq and here. This will create an opportunity to employ more locals in other employment sectors, Especially for those who have not had the opportunity to work in the oil sector.
2- Reducing the burden on the government with regard to providing government job opportunities for unemployed groups, Making use of the remaining cash liquidity for the work of other projects.