Iraqi Oil Minister Ihsan Abdul Jabbar revealed that BP is considering withdrawing from the giant Rumaila oil field, and that Russian company Lukoil has sent him an official notification indicating its desire to sell its stake in the West Qurna-2 field to Chinese companies. The minister stated in a video clip broadcast on the Ministry of Oil's Facebook page that "the existing investment environment in Iraq is not suitable for retaining major investors; all investors are either looking for another market or searching for a different partner." He added, "The investment environment in Iraq does not sufficiently encourage a major oil company to conduct business there; we, as an investment environment, are unsuitable for key partners."
Regarding the Iraqi budget deficit, Abdul Jabbar mentioned that ExxonMobil wants to sell its stake in the West Qurna 1 field for no more than $400 million, a price he described as "extremely cheap." The Iraqi Oil Minister announced that the state-controlled Basra Oil Company is considering entering into a deal.
In the same context, the Financial Committee in the House of Representatives confirmed that the rise in oil prices has not addressed the Iraqi budget deficit. Committee Chairman Haitham al-Jubouri stated in a statement to the Iraqi News Agency (INA): "So far, according to the new oil prices, the financial deficit in the budget has not been bridged despite oil reaching $75. However, Iraqi oil is below global prices, except for Basra Light oil, in addition to the cost of oil production." He added, "A barrel of oil, after extraction, has a net price of $60, multiplied by a production volume of 2.880 million barrels per day; despite this, we find that it has not covered the deficit in the budget." He continued: "Iraq's budget amounts to 130 trillion dinars, and at current prices, we still have a real deficit in investment and operational expenditures amounting to 30 trillion dinars, despite being surprised by some talking about a financial surplus."
