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  • Print publication year: 2009
  • Online publication date: December 2009

7 - The Matter of Creditor Claims: An Examination of United Nations Security Council Resolutions 1790 (18 Dec. 2007) and 1859 (22 Dec. 2008), and Their Predecessors

Summary

INTRODUCTION

As the Introduction to Chapter 5 observes, the Iraqi government may expect at least as much as (U.S.)$58.6 billion in revenue from oil and gas sales during 2008. It had budgeted for expenditures of (U.S.)$48 billion. If one were to make the reasonable assumption that production continues to increase at least incrementally during calendar year 2009, and that oil prices on the international market once again climb to the $75 to $90 per barrel level (at this writing in late autumn 2008 they hover near (U.S.)$50+ per barrel, having collapsed with the worldwide recession from the $150 range), revenue for that particular year should come in close to $70 billion to $80 billion. Of course, this is a gross revenue figure and reflects neither expenses or costs paid to partnering foreign or national oil and gas companies and contractors, nor management, administrative, operational or associated fees owing to relevant Iraqi governmental entities such as the Iraq National Oil Company (INOC), the Oil Ministry, or the State Oil Marketing Organization (SOMO) and its analogues. Furthermore, the Iraqi government's calendar year 2008 $48 billion budget should reasonably be expected to increase for the 2009 calendar year, especially given the country's well-known needs for very basic social services and infrastructure. To the extent that oil and gas sales revenues exceed budgeted expenditures and other internationally or domestically required payments, though, monies would then be available for the satisfaction of pre–Gulf War II Iraqi debts.

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