Report: $35 Billion in Oil Waste and Theft in Iraq

Sources told Al Arabiya about a wide-ranging corruption network in the Iraqi oil sector since 2011, involving oil waste and thefts worth more than $35 billion.

The sources disclosed information indicating the existence of illegal oil deals dating back to 2011, stating that they helped fund militias and political parties, and caused significant financial losses to the state.

They noted that revenues from more than a third of Iraq’s oil production since 2011 went to militias and political parties, benefiting from income estimated at around 1.5 million barrels per day.

The sources added that Iraqi officials manipulated oil quantities allocated by the Ministry of Oil in favor of militias and political parties, pointing out that these entities also obtained official approvals to establish oil refineries, amid what they described as political favors and bribes behind the granting of those approvals.

They confirmed that manipulating oil quantities designated for local consumption helped fuel fuel smuggling operations, while price differences in gasoline became a source of theft, according to information obtained by Al Arabiya.

The Iraqi judiciary announced, in statements to Al Arabiya, the seizure of 213 billion dinars, $12 million, and 400 kilograms of gold in the case of detained Deputy Minister of Oil for Liquidation Affairs, Adnan Al-Jamili.

The Iraqi judiciary confirmed on Sunday that investigations with Al-Jamili are still ongoing, while the Central Court of Crimes for Combating Corruption announced in a statement that the investigating judge “ordered the seizure of 27 billion dinars in the case of detained suspect Adnan Al-Jamili, Deputy Minister of Oil for Liquidation Affairs, and the parties involved with him.”