0

1

2

3

4

5

6

$7 billion

Iraq: Oil and Gas Revenue Sharing

HISTORY OF REFORMS

OIL AND GAS REVENUE AS A SHARE OF GOVERNMENT REVENUE

84%OIL AND GAS EXPORTS AS A SHARE OF TOTAL IRAQI EXPORTS

99%

SOURCE: Lasa Aresti, M. Oil and Gas Revenue Sharing in Iraq (Natural Resource Governance Institute, 2016). http://www.resourcegovernance.org/analysis-tools/publications/revenue-sharingcase-study-oil-and-gas-revenue-sharing-iraq

9%

74%

9%

There is high volatility in total RDP allocation over the years.

PATTERN OF DISTRIBUTION

2010 2011 2012 2013 2014 2015 2016

50%

50%

PETRODOLLARALLOCATION

RDP ALLOCATION

TOTAL DISTRIBUTION:$3.0 BILLION

MINERAL REVENUES SHARED WITH SUBNATIONAL GOVERNMENTS

TOTALREVENUES

DISTRIBUTIONOF REVENUES

Basrah and Kirkuk are the highest producing governorates outside KRG and benefit the most from petrodollar allocation

GEOGRAPHIC DISTRIBUTION (2015)

IRAQ

IRAN

SAUDI ARABIA

TURKEY

SYRIA

AZERBAIJAN

GEORGIA

JORDAN

ARMENIA

RUSSIA

KUW.

Kut

Kirkuk

Najaf

Basrah

MawsilArbil

Baghdad

RDP AND PETRODOLLARALLOCATION(PER CAPITA)RDP AND PETRODOLLAR

ALLOCATION (PER CAPITA)

ANBAR

KERBALA

NINEWA

MUTHANNA

NAJAF

WASIT

DIYALA

ERBIL

MISSAN

THI-CAR

BASRAH

DAHUK

BABIL

SALAH AL-DEEN

SULAYMANIYAH

KIRKUK

QADISIYAH

BAGHDAD $157

$90

$84

$172

$120

$445

$163

$80

$99

$99

$90

$82

$91

$98

$103

$239

$98

$92

$200 AND MORE$100 - $199LESS THAN $100RDP AND PETRODOLLAR ALLOCATION (PER CAPITA)

U.S. invasion and ending of Saddam Hussein’s mandate. Beginning of the Iraq War.

Establishment of the Iraqi Interim government.

Multi-party elections; constitutional referendum.

Oil and Gas Law of the Kurdistan Region-Iraq.

2003 2004 2005 2007

Introduction of Petrodollar allocation.

2010

Oil export agreement between Baghdad and the

KRG which now includes Kirkuk and Halabja

Budget law includes $3 billion for the petrodollar program

and 17% of actual expenditure for the KRG

2014 2015

End of Iraq War

2011

$17.2billion

SPECIAL ARRANGEMENTTO KURDISTAN REGIONAL

GOVERNMENT

$12.7 billionKURDISTAN

$12.7 billion

PETRODOLLARALLOCATIONS

$1.5 billion13 PRODUCING GOVERNORATES

(EXCLUDING KRG)

$1.5 billion

REGIONAL DEVELOPMENT PROGRAM (RDP) TRANSFERS

$1.5 billion18 GOVERNORATES

(INCLUDING THOSE IN KRG)

$1.5 billion

Iraq is a federal country comprising 18 governorates. 15 governorates are administered by provincial governments and three are administered by the Kurd-istan Regional Government (KRG). The main source of revenue for the gover-norates are the RDP transfers, petrodol-lar allocations, and KRG transfers.

• The petrodollar allocation consists of a transfer of US $ 1 to governorates for each barrel of oil produced, for each barrel refined, and for each 150 cubic meters of natural gas produced. Exclud-ed from this allocation are the governor-ates of the KRG, who benefit from a separate share allocated to the region, as

well as non-producing governorates- Diyala and Karbala.

• The RDP is distributed among the eighteen provincial governments, including those within the KRG.

• Transfers to the KRG are supposed to be 17 percent of the total budget.

REVENUES AND DISTRIBUTION (2015 )