‘Misunderstanding’: oil marketing body denies oil smuggling after leaked document sparks media speculation

BAGHDAD — Iraq’s State Oil Marketing Organization on Friday dismissed claims of oil smuggling following the leak of an internal document, calling it part of a long-standing routine and criticizing media outlets for misinterpreting its contents.

The document, first published by Reuters, was addressed to Iraq’s National Security Service and classified oil tankers into two categories: those with a history of GPS manipulation and others considered “unknown” or potentially suspicious due to lack of registration with global tracking systems.

“There was a misunderstanding of the document by the media outlets,” SOMO said in a statement. “The leaked official letter is part of a well-established routine procedure that has been in use for years.”

Marked “very urgent,” the letter highlights tanker movements around the ports of Umm Qasr and Khor Al-Zubair and within Iraq’s territorial waters. Seven tankers were flagged for allegedly manipulating GPS data to falsify their locations, while four others were described as unregistered and not traceable through international monitoring firms.

SOMO claimed that the document does not point to illegal activity. “Smuggling oil is impossible under the current coordination with relevant security forces,” the statement said, adding that “some media channels and program hosts who lack technical background misrepresented the content, portraying it as an acknowledgment by SOMO of smuggling or mixing oil in Iraqi ports and territorial waters.”

The organization said all crude oil and derivative movements are monitored, documented, and audited in line with local and international regulations.

In response to the document’s publication, Iraqi economist Nabil Al-Marsoumi said the concern likely relates to the broader issue of fuel oil smuggling. He said Iraq produces around 18 million tons of fuel oil annually, with more than 12 million tons exported through official channels.