The Board of EITI (Extractive Industries Transparency Initiative) has declared Iraq to be 'Compliant' with the EITI Standard. There are now 18 countries that are 'EITI Compliant'.
EITI compliance means that the country has an effective process for annual disclosure and reconciliation of all revenues from its extractive sector. This allows citizens to see how much their country receives from oil, gas and mining companies.
With approximately 10% of the world’s proven oil reserves and 2% of the natural gas reserves, Iraq becomes the largest EITI compliant country by oil and gas reserves in the world. It now produces around 3 million barrels every day with production expected to expand rapidly.
The industry in Iraq is completely state-owned with the state-owned companies selling crude to accredited international companies. There are also eleven international Technical Service Contracts (TSCs). The semi-autonomous Kurdish Regional Government (KRG) has a number of production sharing agreements. The 2009 Iraq EITI report showed that the government had received $41billion in revenue for oil and gas exports. The 2010 Iraq report is due out by the end of the year.
EITI Chair Clare Short commended Iraq for its achievement saying
"The Iraqi people have not had the benefits that should have flowed to them from their rich oil resources. Compliance with the EITI is a step towards helping to ensure ensuring that the resources will be better managed in the future. I congratulate Iraq on this excellent achievement."