Iraq’s southern oil producers react angrily to budget

The Iraqi cabinet passed the 2014 draft budget on 15 January, but its passage through parliament is facing a number of challenges. As well as complaints from the Kurds (see box, page 5), the budget’s failure to follow through on a 2013 provincial powers law stating provinces should get $5 per barrel of oil produced has provoked huge anger in the oil-producing states of southern Iraq, which are now threatening to block it in parliament.Article 2(1)(d)(2) of the budget states that provinces should receive $1 of additional revenue for each barrel of oil produced, along with $1 for every 150m3 of gas.