How Terrorist Groups Smuggle Oil in Iraq Under al-Sudani's Government
In Iraq, terrorist groups aren’t inventing new ways to steal and profit from oil—they’re using old methods that have worked for years, just with a few updates. This includes strategies once used by companies like AISSOT between 2017 and 2019 to illegally enter the oil export business. These illegal activities are now happening under the full-term government of Prime Minister Mohammed Shia al-Sudani, which is even more heavily influenced by militias than past governments.
One of the simplest ways oil is stolen in Iraq is through "hot tapping"—this means drilling into pipelines or scooping oil from open storage pits or stations within oilfields. These crimes can’t happen without help from insiders. Corrupt officials, from high-ranking deputy ministers to on-site security teams, allow oil to be taken right from government-owned facilities. Although it’s hard to measure exactly how much oil is stolen this way, some industry experts believe it could be more than 50,000 barrels per day, adding up to around $100 million a month on the global market. U.S.-designated terrorist groups like Kata’ib Hezbollah (KH) and Asa’ib Ahl al-Haq (AAH) are reportedly the main groups profiting from this.
These oil thefts often happen at smaller oilfields like East Baghdad, Qayyarah, Najma, Ajil, and Alas. These fields are operated by joint ventures between Iraqi companies and smaller foreign investors, which makes them easier targets for corruption and theft.
How Terrorists Control Oil Transportation in Iraq
The theft doesn’t stop at the oilfields. KH and AAH also control how fuel oil is transported across the country. They have taken over large parts of Iraq’s oil distribution system and use it to make even more money. Under al-Sudani, control of this distribution has been centralized in the Prime Minister’s National Operations Center (PM-NOC), which some reports claim is coordinated by the prime minister’s own brother, Abbas al-Sudani.
Whenever oil is moved from one place to another—like from a refinery to a port—official paperwork called a "Fuel Movement Request" is required. This document lists the truck number, the amount of oil being carried, the type of fuel, and the driver’s identity. The request must be approved by the PM-NOC and cleared by the Oil Police at every checkpoint. The department issuing these documents, OPDC, is reportedly controlled by AAH through its director Hussein Talib Abboud.
KH and AAH also own security companies that charge "fees"—essentially bribes—to allow oil transport trucks to pass. In one notable case, a businessman named Salim Ahmed Said is alleged to have helped these groups by lobbying Iraq’s oil ministry to increase oil production at the Qayyarah oilfield. After production was boosted, Said got the exclusive contract to transport that oil to Basra’s VS Oil Terminal. KH reportedly receives a share of the $80 per metric ton transportation fee from this deal.
Because they control the transport system, these groups can hide oil shipments, change the amount or quality of oil on paper, or reroute it for illegal export—all while appearing legitimate on government records.
It should be noted that the channel or the blog cannot confirm this report. We received this information directly from the West Point Combating Terrorism Center. If there was ever a reason for the U.S. government to object to al-Sudani's re-election, this would be it. Heads up, guys, this is what's happening behind the curtains in Iraq.
