Corruption in oil transport sector resulted in $28 million loss

Documents and oversight data have revealed a series of violations and irregularities related to the oil sector, primarily concerning crude oil transportation and sour water injection contracts (as reported by Zaman al-Wasl last April). These violations have raised serious concerns about the safety of operational processes and the effectiveness of oversight, with initial financial losses estimated at approximately $28 million.

First: Sour Water Injection Contracts and Operational Failures

Investigations have revealed fundamental problems in the management of waste and associated fluids from oil extraction, summarized in the following points:

• Unqualified Companies: Contracts were awarded to companies lacking the necessary competence and technical expertise to extract and inject sour water into designated wells.

• Failed Tests: This selection resulted in the abject failure of all field tests conducted by these contractors, reflecting a lack of rigorous standards in awarding sensitive contracts.

Second: Manifestations of Corruption and Waste in Transportation Operations

The reports highlighted widespread flaws in the mechanism for transporting crude oil from production fields to refineries, including:

• A complete absence of field supervision and monitoring of tanker truck movements during their journey through the desert.

• Operations rely on inaccurate cargo estimates, along with practices that include falsifying invoices and recording fictitious tanker numbers exceeding the actual number on the ground.

• Tankers are not subject to security sealing (sealing) or approved weight certificates, facilitating tampering with the contents, such as adding water to increase volume or manipulating specifications during transit.

• Significant price discrepancies and differences were recorded in the transportation contracts concluded between the transport companies and the Central Region Administration, resulting in substantial financial losses.

Oversight Note

The initial financial losses and damages associated with all these issues are estimated at approximately $28 million, necessitating a comprehensive investigation and holding those responsible accountable to regulate the oil sector and protect public funds.