Baiji refinery fuel diversion to the black market (from 2005 to 2007)
The US Department of Defense reported to Congress in June 2007 that criminal, insurgent and militia groups stole and sold oil products, and that as much as 70% of the fuel processed at the Baiji refinery was lost to the black market, possibly as much as $2bn a year. Oil Protection Force and army infrastructure battalions were "sometimes suspected of being complicit". In February 2007 the Iraqi government and US forces launched Operation Honest Hands against oil smuggling. No individual convictions are on record.
- Period
- From 2005 to February 2007
- Sector
- Oil and gasRefined products (gasoline, diesel, kerosene)
- Kind of case
- Official statement or estimate
- Jurisdiction
- Federal Iraq
How the money moved, according to the sources
Diversion of refinery output and tanker-truck allocations to black-market sales and cross-border smuggling, with complicity suspected among protection forces; proceeds partly funded armed groups.
What happened
No prosecutions are on record; Operation Honest Hands (February 2007) crackdown.
Open questions
- Iraqi Integrity Commission cases on Baiji from 2005 to 2008.
People and companies
This case does not name any person or company. It rests on figures and institutions.
Sources
- US Department of Defense (report to Congress, Section 9010)7 June 2007Government statementTier A
Measuring Stability and Security in Iraq, June 2007
Originalare sometimes suspected of being complicit in interdiction and smuggling
- Wall Street Journal Europe reprinted in Congressional Record (Yochi Dreazen)15 March 2007Press reportTier D
Iraq's Oil Smugglers Are Targeted
OriginalSHA-256 a46864165d68