State-owned Oil Tanker Company uses a VLCC to transport Iraqi crude beyond the strategic waterway, giving SOMO greater flexibility in international sales.
Baghdad, Oct 026 : Iraq’s state-owned Oil Tanker Company has transported two million barrels of Iraqi crude aboard a very large crude carrier (VLCC) beyond the Strait of Hormuz, marking the company’s first such operation in several decades, its director general said.
The operation represents a significant change from Iraq’s earlier practice of delivering crude at the port of Basra. By arranging transportation beyond the strategic waterway, the tanker company is giving the State Organization for Marketing of Oil (SOMO), Iraq’s state oil marketer, greater flexibility in determining how and where its crude is sold.
Oil Tanker Company Director General Ali Qais Abdul Jabbar said the new arrangement could allow SOMO to take advantage of more favourable sales and pricing opportunities in international markets.
According to the Iraqi News Agency, the company held discussions with specialised firms before securing a VLCC for the operation. The tanker was loaded with two million barrels of Iraqi crude and subsequently transported the shipment beyond the Strait of Hormuz.
Abdul Jabbar said the operation was aimed at strengthening Iraq’s capabilities in transporting its crude and improving the country’s flexibility in marketing its oil.
He added that the company had received directives to coordinate with relevant authorities and explore opportunities to purchase and own specialised crude oil tankers. Building up its own fleet, he said, would strengthen the company’s operational capabilities and improve its ability to compete with regional shipping companies.
The move comes against the backdrop of major disruptions to oil shipments through the Strait of Hormuz following the conflict involving Iran and the United States. The strategic waterway is a key route for global oil supplies, making uninterrupted access crucial for major crude-exporting countries in the region.
Iraq has been working to maintain its crude exports despite difficulties affecting shipping through Hormuz. The country had previously secured permission from Iran for its oil tankers to transit the waterway.
In recent months, Iraq has also explored alternative arrangements, including tanker-to-tanker transfers, to move crude beyond the Strait. The country has offered discounts in some cases to attract buyers amid uncertainty surrounding transportation and access to international markets.
The latest VLCC operation could give SOMO greater control over the logistics involved in transporting Iraqi crude after it leaves the country’s export terminals. It also provides the state oil marketer with additional options when negotiating with international buyers.
For the Oil Tanker Company, the operation is also being viewed as a step towards expanding its role in Iraq’s oil transportation network. The proposed acquisition of specialised tankers could eventually reduce reliance on external shipping companies and provide greater control over crude transportation.
The development highlights Iraq’s efforts to adapt its oil-export strategy amid continuing uncertainty around shipping routes in the region. By moving crude beyond the Strait of Hormuz, the state-owned company has demonstrated its ability to explore alternative logistics while seeking to preserve Iraq’s access to international markets.
The successful transportation of two million barrels aboard a VLCC therefore marks not only a major operational milestone for the Oil Tanker Company but also provides SOMO with greater flexibility in managing the sale and movement of Iraqi crude.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
