Daijiworld Media Network - Baghdad
Baghdad, Oct 4: Iraq's state-owned Oil Tanker Company has transported 2 million barrels of Iraqi crude oil aboard a very large crude carrier (VLCC) through the Strait of Hormuz, marking the company's first such operation in decades, its director general said.
The operation marks a shift from Iraq's earlier practice of delivering crude at the port of Basra, with the tanker company now transporting the oil beyond the strategic waterway. The move gives Iraq's state oil marketer, the State Organization for Marketing of Oil (SOMO), greater flexibility in deciding where and how to sell the crude.
Oil Tanker Company Director General Ali Qais Abdul Jabbar said the move could help SOMO take advantage of better sales and pricing opportunities.
According to the Iraqi News Agency, the company held talks with specialised firms before securing a VLCC, which was loaded with 2 million barrels of Iraqi crude and transported the shipment beyond the Strait of Hormuz. The operation is aimed at strengthening Iraq's capabilities in transporting and marketing its crude oil.
Abdul Jabbar said the company had also received directives to consult relevant authorities and pursue opportunities to purchase and own specialised crude oil tankers. Expanding its own fleet would help develop the company's capabilities and strengthen its ability to compete with regional shipping companies.
The development comes amid major disruptions to oil shipments through the Strait of Hormuz following the conflict involving Iran and the United States. Iraq had previously secured Iranian permission for its oil tankers to transit the waterway.
Iraq has been working to maintain its crude exports despite the disruption to shipping through Hormuz. In recent months, the country has used tanker transfers and other arrangements to move crude beyond the strait, while offering discounts to attract buyers.
The latest operation gives SOMO greater control over the transportation and marketing of Iraqi crude and could help the country improve its access to international buyers and pricing opportunities.