Iraq's Performance on the Resource Governance Index
Iraq earned a "weak" score of 47, ranking 29th out of 58 countries. While it performed relatively well on the Safeguards & Quality Controls component, its Enabling Environment score was particularly low.
(out of 58)
(out of 100)
|35||Institutional & Legal Setting||57|
|22||Safeguards & Quality Controls||63|
Institutional & Legal Setting (Rank: 35th/58, Score: 57/100) learn more
Iraq's "partial" score of 57 reflects clear revenue collection mechanisms but a lack of effective disclosure requirements.
The Oil Ministry regulates the sector and grants contracts following open bidding rounds. In many cases, however, contract terms are modified through direct negotiations in which the ministry has substantial discretion.
The fiscal regime varies by region. Outside Kurdistan, companies sign service contracts in which they agree to pay the central government a fee per barrel produced. The State Oil Marketing Organization sells the oil and deposits revenues in the national treasury. In Kurdistan, however, production sharing contracts are used and the resulting revenues are not necessarily remitted to the central government.
Iraq requires environmental impact assessments prior to project implementation, which are published by the Environment Ministry. There is no freedom of information act. Iraq has been an Extractive Industries Transparency Initiative (EITI) compliant country since December 2012.
Reporting Practices (Rank: 24th/58, Score: 52/100) learn more
Iraq received a "partial" score of 52, the result of incomplete disclosure on most revenue indicators.
The Oil Ministry publishes some contract information, including the amount of money per barrel that an operating company receives, but does not provide details on how contracts may have changed in post-bidding negotiations. Kurdistan authorities disclose little information about their licensing process; they generally publish the resulting production sharing agreements, but these do not always include signature bonuses and other key provisions.
The Oil Ministry publishes information on reserves, production volumes, prices, exports, companies operating in the country, and production stream values. The Finance Ministry publishes information on prices and monthly reports on the value of oil exports, as does the central bank. Iraq's first EITI report covers 2009 and includes company-by-company production data as well as information included in the Oil Ministry's reports.
Safeguards & Quality Controls (Rank: 22nd/58, Score: 63/100) learn more
Iraq earned a "partial" score of 63, highlighting uneven checks on the licensing process and inadequate audit requirements for state-owned companies.
Parliament receives copies of oil contracts and is responsible for monitoring the activities of the Oil Ministry, but does not appear to play a significant oversight role. There is a similar lack of legislative oversight of Kurdistan's oil industry.
The national audit office and an external independent auditor review oil revenues. Audit reports go to the parliament but are not published. Government officials with a role in the oil sector must disclose potential conflicts of interest.
Enabling Environment (Rank: 51st/58, Score: 9/100) learn more
Iraq's "failing" score of 9 is its lowest on any component, reflecting an especially low ranking for the rule of law.
State-Owned Companies (Rank: 24th/45, Score: 45/100) learn more
North Oil, South Oil, Midland Oil, and Missan Oil function as operational units of the Oil Ministry. They publish information on reserves, production volumes and values, as well as monthly data on exports and prices. Audited financial reports are not available.
Subnational Transfers (Rank: 9th/30, Score: 79/100) learn more
Most revenue transfers from the central government to the provinces are calculated based on population rather than regional oil production, although there is a plan to expand the "petro-dollar" program currently implemented in Kirkuk, under which oil-producing provinces would receive $1 per barrel. The central government publishes some information on transfers in annual budget documents, as do provincial councils and the regional government of Kurdistan.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||33.0||35.5||115.4|
|GDP per capita, PPP (constant 2005 international $)||4,615||2,990||3,412|
|Oil and gas revenues (% total government revenue)||68||97|
|Extractive exports (% total exports)||97||96||99|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank. Extractive exports 2011 data from 2009.|