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Iraq PM Dismisses Nine Officials Over Oil Smuggling in Babil — AI-generated representative image: An oil pipeline and illegal refinery site in Iraq, illustrating reported oil smuggling operations in Babil province.

Editorial Team

Ali al-Zaidi orders judicial referrals and removes security and oil officials after an investigation uncovered illegal refineries in the Kataib Hezbollah stronghold of Jurf al-Nasr.

Iraq's Prime Minister Ali al-Zaidi has dismissed nine senior security officials over an alleged oil smuggling operation in the Jurf al-Nasr area of Babil province, a stronghold of the Iran-backed Kataib Hezbollah group.

The decision, announced on Saturday, came after al-Zaidi chaired an emergency security meeting to review the findings of a committee investigating smuggling in the area, military spokesperson Sabah al-Numan told the Iraqi News Agency (INA).

The crackdown marks a significant shift in how Baghdad is handling an alleged oil smuggling network estimated to be worth up to $30 million monthly. Previous Iraqi governments had largely avoided confronting the issue in Jurf al-Nasr, which analysts say had effectively operated as a state within a state controlled by armed factions.

The dismissals carry broader implications for the government's push to disarm militias, with experts describing the move as part of a wider strategy to cut off financial support to groups resisting disarmament initiatives.

Dismissals and Judicial Referrals

Al-Zaidi ordered that all individuals accused of involvement in oil smuggling operations be referred to the judiciary following the investigation's findings. He also ordered the dismissal of nine officials, including security and intelligence officers in Babil province, an Interior Ministry commander, and the director of the Oil Pipelines Company at the Ministry of Oil.

The police chief of Babil province was among those dismissed. The investigation uncovered illegal oil refineries and evidence of manipulation linked to the smuggling activities.

Background on Jurf al-Nasr and Kataib Hezbollah

Kataib Hezbollah, an Iran-aligned paramilitary group and one of Iraq's most heavily armed factions, has recently issued several sharp statements against the prime minister, threatening his government and accusing him of corruption. Senior Iraqi politicians previously told the AFP news agency that al-Zaidi had repeatedly said he was ready to confront groups refusing to disarm.

Al Jazeera's Peter Smith, reporting from Baghdad, said previous Iraqi governments had been careful not to address the alleged smuggling network. Two strategic oil pipelines running through the south of the country, just south of Baghdad, had effectively been tapped into, with oil siphoned off, stolen, and sold on the black market in an operation worth tens of millions of dollars every month.

Intelligence Findings and Analyst Perspectives

On Wednesday, the INA reported that intelligence documents containing satellite images showed crude oil and oil-derivatives smuggling operations carried out by an armed faction in Jurf al-Nasr, accusing an unnamed group of tapping into a pipeline there. Al-Numan said the investigating committee confirmed the accuracy of the information.

Akeel Abbas, a senior non-resident fellow at the Iraq Initiative within the Atlantic Council, said oil smuggling by various political factions and armed groups is common in Iraq due to commercial rather than political or strategic gains. He said the latest crackdown has more to do with militia disarmament, noting that the prime minister framed the operation as anticorruption days after a government-linked report about it was leaked.

What Happens Next

Al-Zaidi has stated that no part of Iraq will be allowed to have oil smuggling operations like those uncovered in Jurf al-Nasr. All individuals accused of involvement have been ordered to face the judiciary, while the nine dismissed officials have been removed from their posts.

Further details on the judicial proceedings and any additional dismissals remain pending, with authorities yet to announce the names of all those affected.