Disgraced former NSW politician Eddie Obeid has walked from Long Bay prison this morning after he was paroled to serve the rest of his sentence in the community.

Obeid, 81, a former NSW Labor government minister and powerbroker, was sentenced in 2021 to seven years in jail over a coal exploration licence conspiracy that also involved his son Moses and former NSW State Resources Minister Ian Macdonald.

Eddie Obeid’s sentence carried a non-parole period of three years and 10 months, which expires today.

In a statement, the State Parole Authority said Obeid would be released under strict conditions and be subject to supervision.

Obeid is barred from engaging in any activity involving the control of money or assets of other people or organisations.

He also cannot contact, communicate or associate with co-offenders, excluding his son Moses, without the approval of his parole officer.

The parole order, unless revoked, expires on October 20, 2028.

Obeid, his son, and Macdonald were found guilty of conspiring for Macdonald to engage in misconduct between 2007 and 2009.

Macdonald was found to have provided confidential information to the Obeids over a coal exploration licence that delivered a $30 million windfall to their family.