Syria Oil Map: The Journey of A Barrel of Isis Oil

Syria oil map: the journey of a barrel of Isis oil
http://ig.ft.com/sites/2015/isis-oil/
Inside Isis Inc: The journey of a

barrel of oil
TURKEY
Sinjar
Aleppo
Mosul
Raqqa
KURDISTAN
REGIONAL
GOVERNMENT
Deir Ezzor
al-Qaim
SYRIA
LEBANON
IRAN
I R AQ
Damascus
Baghdad
100km
Territorial control
Isis control
Isis support
Rebel-held
Syrian regime
Kurds
Key
Oil fields
Mobile refinery
Bought by Isis
Oil market
Primary oil routes
Smuggling route
Isis controls most of Syrias oil fields and crude is the militant group's
biggest single source of revenue. Here we follow the progress of a barrel of
oil from extraction to end user to see how the Isis production system
works, who is making money from it, and why it is proving so challenging
to disrupt.
By Erika Solomon, Robin Kwong and Steven Bernard October 14, 2015
1 of 11
15/11/2015, 19:39
1
Where the oil is extracted
Isiss main oil producing region is in Syrias eastern Deir Ezzor province, where
production is somewhere between 34,000 to 40,000 barrels a day, according to
locals. The group also controls the Qayyara field near Mosul in northern Iraq that
produces about 8,000 barrels a day of heavier oil that is mostly used locally to
make asphalt.
Sinjar
al-Jabseh
To Mosul
Raqqa
al-TabqaTo Aleppo
al-Kharata
SYRIA
al-Shoula
Deiro Field
Deir Ezzor
al-Taim
I R AQ
al-Omar
al-Tanak
DEIR EZZOR
SYRIA
IRAQ
al-Qaim
50km
It is diicult to determine a definitive oil production figure for Isis-controlled

areas. But it is clear production levels have dropped in the Syrian fields since
they were taken over by the militants. Most oil fields in the area are aging and
despite the group's eorts to recruit skilled workers, it does not have the
technology or equipment needed to maintain them. Even so, they continue to
2 of 11
15/11/2015, 19:39
provide Isis with its most lucrative income stream.

The price of the oil depends on its quality. Some fields charge about $25 a barrel.
Others, like al-Omar field, one of Syrias largest, charge $45 a barrel. Overall, Isis is
estimated to earn about $1.53m a day.
Oilfield
Est. production (bpd)
Price ($/barrel)
al-Tanak
15,000-17,000
$40
al-Omar
9,000-13,000
$45
al-Jabseh
2,500-3,000
$30
al-Tabqa
1500-1,800
$20
1,000
$30
650-800
$30
600-1,000
$30
al-Taim
400-600
$40
al-Rashid
200-300
$25
al-Kharata
al-Shoula
Deiro
2
Selling crude oil
Though many believe that Isis relies on exports for its oil revenue, it profits from
its captive markets closer to home in the rebel-held territories of northern Syria
and in its self-proclaimed caliphate, which straddles the border between Syria
and Iraq.
The group sells most of its crude directly to independent traders at the oil fields.
In a highly organised system, Syrian and Iraqi buyers queue in their tankers at
the entrances to fields, often waiting for weeks.
3
3 of 11
15/11/2015, 19:39
Oil refineries
Traders have several options after they pick up their cargo:
Take the oil to nearby refineries, unload it and return to queue at the fieldusually
done by traders under contract to refineries.
Sell their oil on to traders with smaller vehicles, who then send it to rebel-held
northern Syria, or east towards Iraq.
Try their luck selling to a refinery or sell it at a local oil market. The biggest are near
al-Qaim on the Syrian-Iraqi border.
Most traders prefer to sell the oil on immediately and return to queue at the
fields. They can expect to make a profit of at least SL3,000 (about $10) per
barrel.
TURKEY
Mosul
Raqqa
Aleppo
Idlib
Tabqa
SYRIA
IRAQ
al-Qaim
TURKEY
Aleppo
Idlib
Jisr
ash-Shugur
Saraqeb
Khsham
JORDAN
SYRIA
al-Tayyaneh
Mayadeen
IRAQ
SYRIA
al-Bukamal
Mobile refineries
100km
4 of 11
al-Qaim
Recently bought by Isis
15/11/2015, 19:39
The bulk of oil refineries are in Isis-controlled Syria. The few in rebel-held
territories have a reputation for lower quality output than the refineries in the
east.
The refineries produce petrol and mazout, a heavy form of diesel used in
generators a necessity as many areas have little or no electricity. Because the
quality of the petrol can be inconsistent and is more expensive, mazout is in
greater demand.
Refining is done by local residents who constructed their rudimentary refineries
after Isis's prefabricated "mobile" facilities were destroyed by coalition air strikes.
The owners make purchase agreements with the militants for their products.
There are also signs that in recent months Isis may have returned to refining. In
interviews with traders, the FT discovered the group had recently bought five
refineries.
Raqqa
Tabqa
SYRIA
al-Tayyaneh
At Isis refineries, the former owner stays

on as a "front" man. The group supplies
the oil; in return it takes all mazout
production and splits the profits on
petrol production with the original
owner.
Mayadeen
al-Bukamal
SYRIA
IRAQ
40km
5 of 11
I R AQ
Traders say Isis has its own tankers that

supply crude to its refineries from oil
fields regularly. The group also appears
to retain many of its earlier contracts
with unailiated gas stations and other
refineries.
15/11/2015, 19:39
4
Fuel to market
Once the oil is refined, it is bought by traders or taken by dealers to markets
across Syria and Iraq. At this point, Isis is almost completely disengaged from the
trade. About half the oil goes to Iraq, while the other half is consumed in Syria,
both in Isis territories and rebel-held areas in the north.
There are fuel markets throughout Isis-controlled areas and rebel-held Syria,
often located close to refineries. Most towns have a small fuel market where
locals buy and sell oil. But traders supplying these smaller markets often buy
their oil in bulk from larger hubs.
Isis markets
TURKEY
Manbij
al-Bab
Raqqa
Aleppo
al-Birayha
Theban
SYRIA
SYRIA
al-Qaim
IRAQ
40km
There are larger Isis-controlled markets

in towns like Manbij or al-Bab in Aleppos
eastern countryside. Traders here must
present a document proving they have
paid zakat, a tithe, to buy oil without tax.
Traders from rebel-held Syria who have
not paid the tithe, must pay a tax of
SL200 per barrel, or about $0.67.
I R AQ
Some privately-owned markets also levy

taxes. Al-Qaim market, one of the largest
in the region, charges buyers and sellers
about SL100 ($0.30) per barrel of crude
purchased.
TURKEY
SYRIA
JORDAN
6 of 11
Sinjar
Mosul
Mosul
KURDISTAN
REGIONAL
I RGOVERNMENT
AQ
Baghdad
al-Qaim
ANBAR
SAUDI ARABIA
In Isis-controlled Iraqi cities like Mosul,
100km
15/11/2015, 19:39
the fuel is sold at mini petrol stations

with two pumps. They are ubiquitous on
Mosul street corners and locals usually
name the oil according to the part of
Syria it came from. This helps buyers
determine the quality of the oil and
compare prices.
Rebel markets
Two types of fuel are sold in rebel-held
Elbeyli/Al-Rai
Syria: pricier fuel refined in Isis areas, and

cheaper locally refined fuel. Residents
typically buy a mix of both, and use the
cheaper variety for generators and keep
better quality variety for their vehicles.
TURKEY
Besaslan
Sarmada
Hacipasa
Kharbet Idlib
al-Jawz
Aleppo
Kafr Halab
Maarat al-Naasan
The importance of Isis oil to those living

in rebel-held areas of Syria is one reason
why the US-led coalition has been
reluctant to target the group's trade
routes. The coalition says it is wary of
alienating local populations by bombing
fuel now critical for their daily lives.
SYRIA
20km
5
Fuel smuggling
With Isis only concerned with making its profits at the pump, smuggling fuel
7 of 11
15/11/2015, 19:39
into neighbouring countries can be good business for entrepreneurial Syrians

and Iraqis. Syrian smugglers say it has been declining in recent months, not
because of tighter border controls but because the sharp fall in international oil
prices make it unprofitable. But some determined smugglers continue their
trade.
Most of the smuggling from the Syrian side has gone through opposition areas
in the northwest. Locals buy fuel at the market, pour it into jerry cans and carry it
over the border on foot or, in mountainous areas, by donkey or on horseback.
In Iraq, the bulk of smuggling through the northern Kurdistan region has been
blocked, so locals say the route now goes south through Anbar province towards
Jordan.
20km
Al-Rai
TURKEY
SYRIA
Orontes River
Sarmada
Aleppo
Besaslan
Hacipasa
Kharbet al-Jawz
Idlib
25 litre jerry can

Weight when full: approx 22.5kg
Equivalent to 15, 1.5kg bags of flour

8 of 11
15/11/2015, 19:39
Boat
When oil prices were high, smugglers loaded larger jerry cans (50-60
litres) of oil into metal tubs or small row boats and, using ropes attached
to each river bank, pulled their cargo across the river and into Turkey. On the
other bank, tractors picked up the supply and took it to a local informal market,
where it was picked up by large trucks, which sold it on.
Pumps
Some Syrian and Turkish border towns have co-operated by burying
small rubber tubes under the border, such as at Besaslan. In recent
months, Turkey has stepped up border patrols and are constantly digging out
the makeshift pipelines.
On foot
A popular crossing point for smugglers carrying jerry cans of fuel on their
backs has been from Kharbet al-Jawz in rebel-held Syria to Guvecci in
Turkey. This has been largely shut down by Turkish forces, but the remote
terrain makes it impossible to stop.
Horseback
In places like al-Sarmada and al-Rai, smugglers have crossed the border
by mule, donkey or horses that can carry four to eight jerry cans at a
time.
Why is the Isis oil trade so diicult to disrupt?

Find out
9 of 11
15/11/2015, 19:39
More coverage
How oil fuels the jihadi
terrorists
Syrias mafia-style gas

deals with jihadis
Syria explainer: Allies and

enemies
The organisation runs a

sprawling oil operation
forcing even its enemies to
do business with it
The need for energy drives

Assad regime into a deadly
game where state-run
company sta are pawns
Making sense of the

relationships beteween all
the dierent actors
Sources: Institute for the Study of War; FT research
SECTIONS
HOME
UK
COMPANIES MARKETS
LEX
WORLD
GLOBAL ECONOMY
COMMENT MANAGEMENT
PERSONAL FINANCE
LIFE & ARTS
TOOLS
SERVICES
SUPPORT
Portfolio
Corporate subscriptions
Help
Lexicon
Syndication
About us
Topics
Conferences
Jobs
Alerts Hub
Contact us
Daily Briefings
LEGAL & ADVERTISING
10 of 11
15/11/2015, 19:39
Advertise with the FT

Terms & conditions
Cookie & privacy policy
Copyright
THE FINANCIAL TIMES LTD 2015.

FT and Financial Times are
trademarks of The Financial Times
Ltd.
11 of 11
15/11/2015, 19:39

Syria Oil Map: The Journey of A Barrel of Isis Oil

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Syria Oil Map: The Journey of A Barrel of Isis Oil

Uploaded by

Copyright:

Available Formats

Syria oil map: the journey of a barrel of Isis oil

Inside Isis Inc: The journey of a