Basra Governorate has announced that it is waiting for the verdict of the lawsuit filed against the Ministry of Oil. The Basra local authorities are prosecuting the Oil Ministry for withholding them from participating in the oil extrapolation negotiations with international oil companies. Basra representatives have complained from the Ministry of Oil interference with the Governorate’s oil strategies and projects.
Basra Governorate is demanding more negotiations rights; the local council has changed the oil company from “South Oil Company” to “Basra Oil Company” after the Iraqi cabinet established Thi Qar Oil Company and Missan Oil company; and separated the two new entities from South Oil Company. Basra officials have declared that Basra Oil Company will only be operational in Basra Governorate and this procedure will create thousands of jobs for its citizens who have been denied from their county’s wealth. South Oil Company was operational in Thi Qar, Missan and Basra, with the latter hosting its head office.
Basra has long been denied from its oil abundance, it extrapolates about two million barrels per day. Even though Basra is currently producing 85% of Iraq’s total oil production; the county’s allocated budget has not even increased by 1%. In addition, Political differences regarding cutting down by 13 to 17% of Missan and Basra’s shares from their oil production have also been frequent, whereas the Iraqi government only assigns 3 to 4% of its budget to Basra.