Al-Fariji reveals the extent of Iraq’s financial losses due to its lack of oil tankers.
Al-Fariji reveals the extent of Iraq’s financial losses due to its lack of oil tankers.
11-4-2026
Information/Baghdad…
Crisis expert Ali Jabbar Al-Fariji explained the extent of the financial loss that Iraq is incurring due to not owning oil tankers to guarantee the export of its oil abroad.
Al-Fariji told Al-Maalouma, “Despite possessing a huge oil wealth, Iraq does not have a national tanker fleet of sufficient size to enable it to manage the transport and marketing of its oil during crises, a gap that was revealed by the Strait of Hormuz crisis.”
He added that “reports indicate that the Iraqi Oil Marketing Company (SOMO) offered Basra Medium crude for October shipments at a discount of $34.50 per barrel, and heavy crude at a discount of up to $37, compared to the reference prices for export destinations. Some reports estimate that the potential losses from the discounts amounted to about $1 billion during September alone. These are published estimates, not audited financial accounts from the Ministry of Oil.”
He explained that “to realize the extent of the financial exposure, an additional discount of $10 per barrel out of 3 million barrels per day is equivalent to $30 million per day, or $900 million over a month. As for the discounts announced for October shipments, they should not be generalized to all exports, as they vary according to the type of crude, the destination and the contract, and part of them reflects transportation, insurance and war risks.”
In contrast, “Saudi Arabia, through its company Bahri, owns 50 Very Large Crude Carriers (VLCCs), according to its 2025 annual report. Each tanker has a capacity of approximately 2.2 million barrels. In September 2025, the company finalized a deal to purchase nine tankers for $1 billion, an investment that reflects the importance of maritime transport within the oil industry. As for Iraq, its government is considering purchasing ten VLCCs at a potential cost of nearly $2 billion, according to some government statements whose seriousness is unknown. This move could enhance Iraq’s negotiating power and reduce its reliance on foreign shipping companies, but its feasibility depends on operating, insurance, and financing costs, as well as the actual savings it would generate.”
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