Iraq seeks to buy crude oil tankers to handle shipments beyond Strait of Hormuz: INA

Iraqi Oil Tankers Co. plans to acquire and own crude oil tankers, enabling it to transport crude beyond the Strait of Hormuz instead of delivering it at Basrah port, according to a state-run Iraqi news agency report on October 3. The company's director general, Ali Qais, revealed this plan, citing directives from the prime minister and direct supervision by the oil minister.

Qais stated that this is the first time in decades that the company will transport produced crude oil beyond the Strait of Hormuz. The first shipment, consisting of 2 million barrels of Iraqi crude, successfully transited the Strait of Hormuz on October 3, as reported by the state-run Iraqi News Agency (INA). However, the specific destination and crude grade of this shipment were not disclosed.

Qais explained that this move aims to shift part of Iraq's oil sales operations from the standard delivery model at Basrah port to transporting the oil beyond the strait, potentially capitalizing on better sales and pricing opportunities by engaging with the State Marketing Organization (SOMO).