Minister says smuggling of Iraqi oil to Azerbaijan, Afghanistan, Iran goes on unabated

Mirza Khazar — Sun, 18 Dec 2011 16:31:09 -0500

By Laith Jawad

Azzaman, December 17, 2011

Smuggling of Iraqi crude is going on unabated with contraband shipments reaching as far afield as Afghanistan, Azerbaijan and the Gulf states, said Hussein al-Shahristani, deputy prime minister for energy affairs.

In an interview with Azzaman, to be published in full tomorrow (Sunday), Shahristani singled out the Iraqi Kurdish autonomous region as being heavily involved in the smuggling of oil to Iran and other states.

The minister gave no figures on the volume of oil that is being smuggled but hinted that it was carried out on a scale not known before.

“Oil smuggling operations are continuing from Iraq to Azerbaijan, Afghanistan, Iran and the Gulf ports,” said Shahristani. “Oil smuggling operations are continuing in the Kurdish region to these countries and we have spotted these operations via satellites. They are documented with pictures.”

Shahristani did not say what measures the government has in mind to halt smuggling and whether any high-ranking Kurdish authorities were involved.

It was not also clear how the Kurds in northern Iraq managed to smuggle oil to the Gulf ports in the south. Earlier reports spoke of Iraqi Shiite militias heavily involved in smuggling from the southern Iraqi oil fields.

But Shahristani said the central government had no control over the quantities of oil the Kurdish region produces, which are estimated at about 100,000 barrels a day.

The oil issue was reported to have been solved and the Finance Ministry has already funneled $427 million to Kurdish coffers to settle differences over oil production and exports originating in the Kurdish region.

But the minister said: “The central government has no knowledge of oil exports originating in the Kurdish region and that it receives no royalties.”

Shahristani is very critical of the deals the Kurds have struck with foreign firms to develop oil fields in their region, comprising the three provinces of Dahouk, Arbil and Sulaimaniya.

In the interview, he insisted that the deals were illegal and that development of oil fields, striking of deals with foreign firms and issues related to production, output and royalties are the sole prerogative of the central government in Baghdad.

source: Azzaman.com

The Voice of Mirza Xazar: Minister says smuggling of Iraqi oil to Azerbaijan, Afghanistan, Iran goes on unabated

Minister says smuggling of Iraqi oil to Azerbaijan, Afghanistan, Iran goes on unabated