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Foreign Oil Companies in Basra Caught in Political Crossfire

Iraqi Prime Minister Nouri al-Maliki’s State of Law coalition has lost control of the governorship in the oil-rich province of Basra, adding a new wrinkle to oil disputes in the region.

Workers of South Oil Company (SOC) adjust a valve at the Rumaila oil field in Basra Province in this May 24, 2010 file photo. The initial development plan agreed by Exxon Mobil and its partners for Iraq's West Qurna Phase One oilfield included drilling eight new wells and overhauling up to 50 wells this year to boost output. Exxon Mobil wants to leave its flagship Iraqi oil project after upsetting Baghdad by signing a deal last year with the autonomous northern Kurdish region, which the central government d
Workers of the South Oil Company (SOC) adjust a valve at the Rumaila oil field in Basra province in this May 24, 2010 file photo. — REUTERS/Atef Hassan

The change of the municipal government in the oil-rich Iraqi city of Basra, some 490 km (305 miles) from Baghdad, raises a number questions regarding the policy that the new government will adopt in dealing with the many foreign oil companies operating in the area on service licenses from the central government in Baghdad.

Prime Minister Nouri al-Maliki's coalition failed to retain the governorship of Basra province — considered the highest local authority, according to the Iraqi constitution — after winning it in the last round of elections. Instead, the coalition was forced to make do with heading the municipal council.

Possession of the governorship of Basra went to the bloc of the Shiite cleric Ammar al-Hakim, who supports granting a greater voice to Iraqi Sunnis in managing the country's affairs. He prefers to work with another cleric, Muqtada al-Sadr, instead of Maliki.

A source in the prime minister's office informed Al-Monitor that "Maliki was extremely angry when Hakim and Sadr decided to ally with one another and exclude Maliki's State of Law Coalition from the governor's office of Basra."

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