Business | Oil & Gas
Iraq expected to earn $70b in export revenue windfall
New data on Iraq oil revenues suggests the country's government will reap an even larger than expected windfall this year - as much as $70 billion - according to the special US auditor for Iraq.
- AP
- Published: 00:45 April 25, 2008
Washington: New data on Iraq oil revenues suggests the country's government will reap an even larger than expected windfall this year - as much as $70 billion - according to the special US auditor for Iraq.
The previously undisclosed information is likely to strengthen the hand of US lawmakers complaining that Iraqis are not footing enough of the bill for rebuilding their nation - particularly in light of rising oil production and world prices.
Oil prices on Wednesday hovered near $120 a barrel.
Defence Secretary Robert Gates met privately on Tuesday night with Senate Armed Forces Committee chairman Carl Levin, where the Democrat said he would raise the issue of spending in Iraq.
Revenue
New figures from Iraq's government show revenue from exports hit $5.83 billion in December - more than $1 billion over what was previously reported by the government, said Stuart Bowen, special inspector general for Iraq reconstruction.
It compared to $2.4 billion in January 2007 and $3.3 billion in July, he said.
The latest data "clearly substantiates... that Iraq is enjoying a record windfall as the result of record oil prices, record oil production and record oil exports," Bowen said.
Iraq's oil ministry had previously said revenue for December was $4.7 billion. The new figure of $5.83 billion was included in a year-end report that is just now being given to the US government, Bowen said.
With the revised December figure, and continued strong production and export figures since then, he said he now believes oil revenues could soar to $70 billion in 2008.
"If this continues, it would be double what they anticipated" for their budget, he said.
"If annualised, it would be about $70 billion ," said Bowen, who had predicted in a March hearing in Congress that revenues could climb to as high as $60 billion.
That was up from an earlier estimate of $35 billion. The new figures also come as Bowen prepares to release the latest of his quarterly reports, in which he audits a $48 billion US reconstruction programme that has made mixed headway toward restoring basic services and getting Iraq's economy on track.
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