SULAIMANI, Kurdistan Region — Oil smuggling out of the Kurdistan Region has become a regular, troubling sight, with an estimated 300,000 barrels leaving the Region each day. Destinations include Iran and Turkey, with further distribution across Turkmenistan, Afghanistan, and Pakistan.
Despite ongoing tensions between the Patriotic Union of Kurdistan (PUK) and Kurdistan Democratic Party (KDP), both ruling parties appear unified on the profitable sale of oil at low prices.
The KDP produces around 180,000 barrels per day, while the PUK produces over 120,000 barrels. Sold at prices between $30 and $35 per barrel, the monthly revenue generated by these sales is estimated at $300 million, reportedly benefiting influential families within the Barzani and Talabani circles.
The oil produced is refined at facilities linked to each party, with products split between the domestic market and export channels.
The PUK exports oil to Iran through the Bashmakh and Parvizkhan crossings, while the KDP channels exports through Haji Omaran and Ibrahim Khalil towards Turkey. Some of this oil, managed by KDP-owned Kar Company, is reportedly transported through Islam Qala port in Herat, Afghanistan, with diesel reaching Afghanistan via Iran.
The parties also move oil to Iran through various routes, with exports extending to Turkmenistan via the Anzali Port, and even to Dubai through the ports of Bandar Imam Khomeini in Bushehr province.
Tensions between the PUK and KDP have escalated over energy policies, recently affecting electricity in the Sulaimani region, where the PUK is ruling.
The KRG Ministry of Natural Resources disclosed that oil deliveries to two power plants in Sulaimani have been restricted, with checkpoints between Erbil and Sulaimani blocking tanker traffic.
These checkpoints, reportedly under instruction, now prevent oil shipments from reaching the Tasluja and Sulaimani plants, which together generate about 80 megawatts of power.
The disruption has already led to power shortages, and if unresolved, Sulaimani could face an extended electricity blackout. The PUK may consider redirecting resources, including potentially seizing control of the Khormor gas field, which supplies electricity to Erbil, to mitigate the crisis.
The ongoing oil smuggling and inter-party disputes underscore the challenges facing the people of Kurdistan, as political rifts disrupt crucial public services and undermine regional stability.
