Basra oil protests set to intensify as industry leaders push back against government decision

BASRA — Protests at key oil production sites in Basra are expected to persist, according to a board member of the Basra Oil Company, as major figures in Iraq’s southern petroleum sector, including the Minister of Oil, are anticipated to intervene. The protests began in response to a Cabinet decision to reduce the self-generated profits of oil companies and redirect them to Baghdad, prompting warnings of “escalation” measures.

On Tuesday, protests spread across various oil companies in Basra, with demonstrators opposing Cabinet Decision 24600, which mandates increasing the treasury’s share of company profits from 45% to 75%. Protesters closed the gates of several sites, including Al-Burjisiya, Basra Oil Company, North and South Rumaila, Majnoon Field, and West Qurna 1. However, the North Rumaila gate was later reopened to allow administrative operations to continue.

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.”

Muhammad Baji Aboud, a member of the Basra Oil Company’s board of directors, emphasized the importance of self-financing for oil companies. He noted that the Minister of Oil sided with the protesters and refused to implement the Cabinet’s decision during meetings. According to Aboud, after exhausting all diplomatic efforts, the protesters resorted to demonstrations, which he described as constitutionally protected.

“Production operations were not affected during our protest; we did not lose a single barrel of oil, and the head of our protest committee personally oversees the continuity of oil production at the company,” Aboud said in an interview with Iraq 24 TV.

Aboud warned that the Cabinet’s decision to centralize all revenues from extraction and refining companies could lead to deficits in maintenance and expansion activities. He argued that the oil sector does not need centralization, as every minute of delay results in production losses. He also dismissed the rationale behind ending self-financing to fund adjustments to the state employee salary scale as “untrue,” suggesting that increasing production would be a better solution.

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.

Aboud stressed that the protests are not politically motivated but are driven by national interests. He warned that if the central government does not respond to their demands, further escalatory measures could be taken, with all forms of protest remaining on the table depending on the government’s response.

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.