Defense Department

Boosted By Jordan, Oil Company Overcharged U.S. Military For Fuel In Iraq

Ryan J. Reilly | September 27, 2011, 6:00AM

A soldier helps guard the Rumelia Oil Field in southern Iraq on April 2, 2003.

An oil company supplying the U.S. military with gas in Iraq was able to overcharge the government because they were the only company authorized by Jordan to transport through their country, according to a Defense Department Inspector General report obtained by TPM via Freedom of Information Request.

The International Oil Trading Company (IOTC) was paid "about $160 to $204 million (or 6 to 7 percent) more for fuel than could be supported by price or cost analysis," according to the report. Investigators also found that Kellogg, Brown, and Root performed an "inherently
governmental function" by accepting fuel on behalf of the government.

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