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Attacking the Oil Sector

Attacking the Oil Sector

Radical Islamists may be attacking the Iraqi energy sector in an attempt to push up the already high price of oil. The past week saw attacks on three oil tankers and a refinery in the central provinces.

Militants attacked Iraq’s largest refinery, located in Bayji in Salah ad-Din province on 26 February. Gunmen entered the facility, killed four employees and detonated explosive devices around the premises, causing damage and leading to a temporary shutdown in operations. Services have now been resumed at Bayji but the repairs are likely to take weeks, if not months to complete.

A sticky bomb (Under Vehicle Improvised Explosive Device – UVIED) was also affixed to an oil tanker in Dourah district, southern Baghdad last week. It destroyed the vehicle when it detonated, injuring a civilian. A roadside bomb in the same district targeted an oil tanker earlier on 2 March, damaging the vehicle and injuring two bystanders. A roadside bomb also targeted an oil tanker in the eastern district of Kamaliyah on 28 February, injuring two people and damaging the vehicle.

Coincidentally, the same week also saw an unexplained blast and disruption in service at a refinery in Arbil while a fire at the refinery in Samawah in the southern province of Muthanna also led to a suspension in services.

Protecting Iraqi Oil - image taken from wikipedia

Strategic Intent

Radical Islamists have targeted the energy sector in the Middle East on numerous occasions over recent years. However, their current intent to do so is likely higher than normal, given that oil prices are so high.

This market trend presents an opportunistic vulnerability in Western markets that Middle East terrorist organisations may seek to capitalise on. Further attacks will only push the price higher at a time when Libya, the source of two per cent of the world’s oil consumption needs, is currently in a state of disarray.

Unrest in the Middle East currently spans from Algeria to Bahrain and has already pushed up the price per barrel. Western economies may soon begin to feel the pinch, and al-Qaeda is likely intent on exacerbating the impact.

This above series of events may have been entirely coincidental in their timing, and may have been conducted by completely different groups. Nonetheless, a rise in the oil price will increase the overall strategic value of associated infrastructure.

Those responsible for security at oil-related operations should therefore review the protective measures in place at their facilities and be prepared for further attacks over the coming weeks.

AKE ltd

John Drake is a senior risk consultant with AKE Group, a British private security firm working in Iraq from before 2003. Further details on the company can be found here

You can obtain a free trial of AKE’s intelligence reports here

You can also follow John Drake on twitter at www.twitter.com/johnfdrake

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5 Responses to “Attacking the Oil Sector”

  1. Adam says:

    Hi John,

    I see where you’re coming from but I think this is more to do with undermining the Iraqi Government than inflating prices for western countries.

    As you rightly state, there were attacks aginst oil tankers and the big one against Baiji oil refinery. The Baiji refinery supplies domestically used products and I believe at least one tanker was making an internal delivery – so these attacks would have had minimal effect on global oil prices.

    however, these attacks cost the Iraqi Government millions, lead to a shortage of produce for ordinary Iraqi’s and create concern amongst foreign investors, which I think that is the more immediate aim.

    Certainly food for thought though.

    K/R
    Adam

  2. [...] The central provinces saw an overall decline in violence over the past week. There was a fall in the number of suicide attacks taking place which had a positive effect on casualty figures. The capital saw a slight rise in violence, with a particular increase in bomb attacks, but the majority of devices used were small, causing numerous injuries, but few fatalities. One issue of concern has been the repeated targeting of oil tankers in the city, with four such attacks over the past two weeks. Companies responsible for the transport of oil products should review their security procedures, particularly in Baghdad. The energy sector in general is advised to monitor the trend as the country may be witnessing a rise in the number of attacks on the oil and gas sector, as outlined here. [...]

  3. [...] Mosul remains the most hostile part of the north and last week it bore the brunt of attacks, with several people killed in shootings and bombings in the area. An Iraq-Turkey oil pipeline was also bombed to the south of the city, which led to it being shut down for five days. For further analysis on recent violence against the oil sector in the country please read this article. [...]

  4. Nouri Al Saaeed says:

    As an Iraqi who is truly annoyed by those who are opposing Iraq’s progress.. who come in all shapes and forms including those who unfairly seek to profit on the expense of others (Be it the corrupt ones or the ones who destroy and sabotage).. All I can say is.. COMMON! there ought to be the guys out there who can cure this insect problem! What happened to the big boys out there?? We need this garbage to be taken out so we can all focus on building and employing this high potential country! Allow the true forces of the free market to play and keep score the “Business way!”..

    We are in a globalized world today.. So someone out there step up! Iraqis aren’t in good shape to do it themselves. But we’ll be grateful enough to repay you the favor on an equal level of reciprocation!

    I’m not talking about another conflict.. I’m talking about doing this the effective way.

    P.S.

    I know this has gone on deaf ears but just wanted to express! Cheers

  5. [...] another as they attempted to siphon oil from a pipeline near Mosul. The oil sector remains a prized target for militants and criminals alike, although the killing of the NOC worker could have been related [...]


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