Selling oil to the Smugglers!22 Apr 2024 16:39
This report, published in Kurdish by Erbil's Bwar News website, exposes the major players and staggering profits involved in smuggling crude oil from the Kurdistan Region to Iran and Turkey.
For months, four companies have been illicitly transporting over 700 tankers laden with 160,000 barrels of crude daily across borders into these neighboring countries.
Powerful local business conglomerates have established dedicated front companies to facilitate this underground oil trafficking operation from Kurdistan's fields:
• In Erbil, Makal (affiliated with KAR Group) receives crude from Khurmala in Erbil operated by Forza, exporting it through Haji Omeran and Ibrahim Khalil border crossings.
• Pator smuggles oil from Erbil and Duhok into Iran through Sulaimani province via Bashmakh and Parwizkhan borders - For each tanker to pass into the PUK zone, a charge of $300-360 per tanker is applied.
• Unicode (tied to Lanaz Group) transports Duhok's crude to Iran and Turkey.
• Hydrocarbon Company (linked to Qaywan Group) trafficks fuel from Sulaimani and Koya into Iran.
Once in Iran, Kurdistan's oil is funneled to ports like Bandar Imam, Bushehr and Bandar Abbas, where specialized facilities prep the crude for global export.
While most goes to Iran, portions also reach Turkey, with a portion sent to the Tüpraş Batman refinery and the remainder to the Antakya and Mersin refineries.
Oil producers sell to these trafficking firms at cut-rate $28-$33 per barrel, which resell at $60 - a $25 discount to global prices, netting immense profits.
Specifically, DNO, Genel Energy, Taqa, and HKN sell oil at $31.50 per barrel in Duhok province, while Forza, Khurmala, Ain Zala, and Sufaya sell at $32 per barrel, and Sheikhan oil is sold at $28 per barrel.
These oil producers sell between 200,000 and 250,000 barrels daily to the four companies and domestic refineries, generating over $200 million monthly for producers like DNO, Genel, Taqa and HKN. But the real windfall is for the smuggling companies, raking in around $150 million each month.