Iraq’s state-controlled Oil Tanker Company has completed a shipment of 2 million barrels of Iraqi crude oil through the Strait of Hormuz aboard a very large crude carrier, the company’s director general said on Saturday. Company leadership described the operation as the firm’s first such movement through the strait in decades.
The shipment represents a change in routine for the company. Historically, the firm delivered crude at the port of Basra, but the recent operation routed cargo through the Strait of Hormuz. That logistical shift is intended to provide the state oil marketer, SOMO, with additional latitude in choosing sale destinations and methods.
In a statement, Ali Qais Abdul Jabbar, director general of the Oil Tanker Company, said the new arrangement could allow SOMO to secure improved sales and pricing opportunities. He framed the move as a way to increase flexibility in the marketing and disposition of Iraqi crude.
Abdul Jabbar also said the Oil Tanker Company is taking steps to expand and modernize its fleet. The company is pursuing the purchase and operation of specialized crude oil tankers as part of efforts to grow capacity and boost its competitive standing vis-a-vis regional shipping companies.
The company’s recent operation through the Strait of Hormuz and its stated plans to acquire dedicated tankers together signal an operational pivot away from sole reliance on Basra port deliveries toward broader maritime routing options. How those plans develop and how they affect SOMO’s sales outcomes or the company’s competitive position will depend on the execution of the fleet expansion and subsequent commercial activity.
Summary
Iraq’s Oil Tanker Company moved 2 million barrels of crude through the Strait of Hormuz on a very large crude carrier, its first operation of this kind in decades. The change from port-of-Basra deliveries aims to give the state oil marketer SOMO more flexibility in selling Iraqi crude. The tanker company is working to buy and operate specialized crude tankers to expand its fleet and improve competitiveness against regional shipping firms.