Basra oil industry protests government profit-share increase

BASRA — Protests have erupted across oil company sites in Basra governorate as demonstrators voiced anger over the Iraqi Cabinet’s decision to increase the Treasury’s share of corporate profits from public companies from 45% to 75%. Protesters blocked key locations, including the Nargessiya site, Basra Oil Company, North and South Rumaila, Majnoon Field, and West Qurna 1, according to a 964media reporter on the scene.

Muhanad Al-Hamdi, a protester, told 964media, “Raising the Treasury’s share from oil companies from 45% to 75% turns profitable companies into losing enterprises. If the government doesn’t reverse this decision, we’ll escalate by protesting inside the oil fields.”

The Treasury’s share refers to the portion of company profits paid to the government as corporate taxes, used to fund public services. The Iraqi Cabinet issued the decision on August 13 as part of broader economic reforms aimed at strengthening state finances.

However, the move has drawn sharp criticism from lawmakers and economic experts who argue it undermines employee rights and shifts oil companies from self-sustained operations to central control. Economist Nabil Al-Marsoumi warned on social media that “redirecting a share of sales from extraction companies to the Ministry of Finance effectively strips these companies of their ability to finance operations and pay employees, potentially forcing them into a centrally funded system.” He also noted that “increasing the Treasury’s share would negatively impact capital, future expansions, social services, and employee profits.”

On August 21, the General Secretariat of the Council of Ministers clarified that some interpretations of the decision were inaccurate, stating, “The decision does not involve converting self-financing companies to centrally funded ones. Public companies remain governed by the Public Companies Law (No. 22 of 1997), and any changes would require parliamentary legislation.” The statement assured that “increasing the Treasury’s share of profits does not affect company expenses or employee salaries,” and explained that this measure has been implemented before to support the state treasury.

Tawfiq Malik, a coordinator of the oil sector protests, highlighted the broader impact, stating, “Administrative employees joined the demonstrations to reject Decision 24600 issued by the Cabinet, as it harms oil companies and turns them from profitable entities into loss-makers. This decision will have disastrous consequences for Iraq’s future. We need self-sustaining economic resources, and diverting financial entitlements from oil companies to the state treasury hinders progress and prevents production bonuses from reaching employees.”

Protester Abbas Majid warned of further actions, saying, “Today’s protest was spontaneous, but if the government doesn’t reverse its decision, we’ll turn our protests into an open-ended sit-in and shut down all oil fields.”