BAGHDAD: A number of Iraqi lawmakers downplayed a recent upbeat prognosis by Moody’s that Iraq’s oil output would surge to five million barrels a day and said current prices and the large shares that oil companies take from the country’s oil revenues will only leave a “pittance” for the state’s treasury.
Noura al-Beyjari, member of the Iraqi parliament’s committee on economy and investment, said Iraq only earns $22 a barrel at current prices, adding that foreign oil companies account for the largest proportion of returns.
She also revealed that concerned Iraqi authorities sell crude oil at prices cheaper than the market, seeking speedy sales.
The lawmaker explained that the federal government is required to make $65 billion available to finance operation expenditures, in addition to $30 million a day to finance the country’s battle against terrorism.
According to Moody’s data, oil comprises 50 per cent of Iraq’s gross domestic product while the country depends heavily on oil revenues to finance almost all of its imports.
The rating agency expects the Arab country’s oil revenues to slide by 35 per cent this year compared with last year, sending the budget deficit up 18 per cent.
