The Strategist

Islamic State's Oil Business

10/23/2015 - 17:32

Islamic State gets up to $ 50 million per month by selling oil from the fields located in the controlled territory in Syria and Iraq - reported Iraqi intelligence.

Gulustan via wikimedia
Gulustan via wikimedia
These findings are consistent with the estimates of American experts, said the agency Associated Press.

Oil revenues are a major source of funding for Islamic State militants, which not only protects the infrastructure of oil production, but also attracted foreign experts and equipment purchases to improve it, the report says.

The agency cites unnamed US officials, familiar with the problem, and writes that "Washington is in talks with the governments of countries in the region, including Turkey, expressing concern about the supply of energy infrastructure in Islamic State-controlled areas in Syria, including the equipment for processing and transportation".

Interest from buyers is caused by dumping prices offered by Islamic State. In some cases, it is $ 35 a barrel. Sometimes it even descends down to $ 10.

According to incoming data, confirmed by Islamic State themselves, at the moment, radical Islamists is controlling 253 oil wells only in Syria is, of which more than 160 are in working condition. As a result, oil production is up to 30 thousand bpd only in Syria and from 10 to 20 thousand bpd in Iraq.

The main consumer of oil are Turkish smugglers, who then re-sell it. According to Iraqi intelligence, the oil is sold to Iraqi regions of under the administration of the Kurds, even though they reject these accusations, the AP reported.

Money for the Turkish oil buyers pay for women - members of the IG - in Istanbul and Ankara, as women attracted much less attention than men, leads the agency security officers in Iraq.