Economist: Ex-PM Maliki lost Iraq $500bn in oil

ERBIL, Kurdistan Region – Economist Adnan Janabi, the former head of the Iraqi parliament's oil and gas committee, has criticized Baghdad's oil policies and laid the blame on ex-prime minister Nouri al-Maliki.

“For 2015, the Iraqi government must pay the oil companies some $20 billion and Baghdad should be committed the deals it makes,” Janabi told the Al-Mada newspaper on Friday.

Janabi said the delayed formation of a federal council for the oil and gas is the leading factor in the corruption and decline of Iraq's oil sector.

Janabi, a member of interim prime minister's Ayad Allawi’s cabinet in 2005, said at the time of the Allawi’s government there was a plan to increase production and oil exports to six million barrels per day at a time when the price was $100 for per barrel of crude.

“Due to bad administration in terms of the oil sector during Maliki's time in office, the country lost $500 billion,” said Janabi, referring to Mailiki tenure from 2006-2014.

In early march, a Kurdish MP in Iraqi parliament said Baghdad was considering a change in its oil agreements with foreign firms to claw its way out of a deep economic crisis. 

Iraqi Kurdish MP Arez Abdullah said the parliamentary oil committee had met with the country’s oil ministry to work out a solution.

“According to our information, Iraq owes oil companies $21 billion. We expect the amount to increase, as Iraq does not have enough money to pay them back on time,” Adullah told Rudaw.