Somehow Iraq sells its oil for free one month of the year and only receives 11 months of revenue

by **claud39** on Fri Nov 06, 2020 9:48 am

Somehow Iraq sells its oil for free one month of the year and only receives 11 months of revenue

11/06/2020

Economy News _ Baghdad

It is known that Iraq sells its crude oil by exporting it to different countries, while distributing quantities of its oil to Iraqi refineries, which in turn refine, extract and distribute derivatives, but the refining capacity in Iraq produces approximately half of the amount needed by the market only from derivatives, especially gasoline, white oil and gasoline.

Large figures revealed by government and parliamentary sources, which represent the value of Iraq's banks and spend it annually on oil derivatives that it buys from abroad, despite being the second largest exporter and producer of oil in OPEC, the weakness of its refining factories makes it in constant need of oil derivatives.

A member of the Parliamentary Energy Committee, Ghalib Muhammad, revealed that Iraq imports oil products worth 3 trillion dinars annually, while the Ministry of Oil’s expenditures during the past year amounted to more than 11 trillion dinars, or about $ 10 billion.

Muhammad said in press statements, "There is mismanagement in the Ministry of Oil that extends for years and massive corruption that is not covered by it, but there are other joint ministries," noting that "Iraq annually imports 3 trillion dinars of oil products while its crude oil production capacity reaches 5 million barrels per day.

He added, "The expenditures of the Ministry of Oil during the past year amounted to more than 11 trillion dinars in 2019," wondering, "Why do we import oil products and we have all these capabilities, whether financial or competencies."

He pointed out "the need to work to achieve self-sufficiency in oil products and to spend the money spent on imports in strengthening the infrastructure in the oil sector."

A month's revenue is wasted

3 trillion dinars, or approximately $ 2.5 billion, which is equivalent to the profits of Iraq's oil for a whole month that it has been achieving for some time now, as Iraq's monthly oil revenues, according to the Ministry of Oil data, amount to 3.5 billion dollars, while about a billion of them go To foreign oil companies and licensing contracts as well as compensation from Kuwait, so that Iraq has only $ 2.5 billion, as a monthly profit from oil sales, and thus it spends it on purchasing oil derivatives annually, which means that the profits of a whole month of the months of the year go dry, that is, as if he sells oil for free for a period A month, and it only receives 11 months of revenue from annual oil sales.

https://economy-news.net/content.php?id=22567