Iraqi Oil Tankers Co. aims to purchase and own crude oil tankers, allowing it to ship crude beyond the Strait of Hormuz rather than offloading it to buyers at Basrah port, the state-run Iraqi News Agency reported Oct. 3, citing Ali Qais, the company’s director general.

The first shipment of Iraqi crude, using the company’s own VLCC, transited the Strait of Hormuz on Oct. 3, INA reported, citing the tanker company. The shipment comprised 2 million barrels of Iraqi crude, INA reported, without specifying the destination beyond the Strait of Hormuz or the crude grade.

“Acting on directives from the prime minister and under the direct supervision of the oil minister, the company was tasked, for the first time in decades, with transporting produced crude oil beyond the Strait of Hormuz,” Qais said, according to INA. “This move shifts part of Iraqi oil sales operations from the standard delivery model at Basrah port to transporting the oil beyond the strait.”

Securing a VLCC to transport the crude would enable the state marketing agency SOMO “to capitalize on better sales and pricing opportunities,” INA reported.

“There are ongoing directives to consult with relevant authorities and identify suitable opportunities as quickly as possible to purchase and own specialized crude oil tankers,” Qais said, according to INA.

Source: Platts