An oil-rich country without tankers… billions are exported, and the shipping bill is paid to others.
An oil-rich country without tankers… billions are exported, and the shipping bill is paid to others.
9-24-2026
Information/Report..
Despite Iraq possessing one of the largest oil sectors in the region and its heavy reliance on crude exports, the issue of owning giant oil tankers remains a missing link in the Iraqi export system, raising questions again about the reasons for the delay in building a national fleet capable of transporting large quantities of crude oil to global markets.
In this regard, former MP Bassem al-Gharibawi told Al-Maalomah, “It is astonishing that Iraq does not own giant oil tankers like many other oil-exporting countries, while the revenue from a month and a half of leasing tankers to transport oil would have been enough to purchase new ones.” He added, “The contracts concluded in this area are a form of corruption.”
He further stated, “Iraq owns an oil tanker company, and the funds spent on leasing could have been invested in purchasing tankers and transporting Iraqi oil to buyers, instead of continuing to rely on leasing.”
Al-Gharibawi stated that “Iraq has not purchased giant oil tankers for over twenty years, unlike other oil-exporting countries, and this raises many questions.” He pointed out that purchasing tankers could have been done in a short period, but the situation has persisted for more than two decades without the country possessing a large fleet.
He indicated that “Iraq owning a fleet of tankers would have yielded numerous benefits, including profiting from oil prices, reducing the funds paid for leasing tankers, and transferring these funds to the state treasury.” He emphasized that developing the oil tanker company and strengthening its fleet “requires a courageous stance and decision from the Iraqi government.”
For his part, oil expert Hamza al-Jawahiri told Al-Maalouma that “the obstacle preventing Iraq from purchasing giant oil tankers is political, and there is nothing technically preventing Iraq from owning such tankers.”
He added that “Iraq does not own giant oil tankers to transport Iraqi oil to buyers,” stressing that “the reason Iraq relies on leasing in this regard is a political decision, not a technical obstacle.”
The Iraqi State Oil Marketing Company (SOMO) sells most of its oil on a FOB basis. Under this arrangement, the responsibility for shipping and associated risks transfers to the buyer after the oil is loaded onto the tanker at the port of Basra.
In this context, the Ministry of Oil has been among the ministries with the highest investment expenditures in recent years, with its investment spending in 2025 exceeding 12 trillion and 873 billion dinars, equivalent to approximately 9 billion dollars.
For years, the Iraqi Oil Tankers Company’s fleet has consisted of a limited number of vessels of varying capacities, including four large tankers, each with a capacity exceeding ten thousand tons: Baghdad, Shatt al-Arab, Tigris, and Euphrates. According to available data, their combined cargo capacity does not exceed approximately 1.5 million barrels.
The tanker sector remains one of the issues highlighting the importance of developing a comprehensive Iraqi oil export system, encompassing production, ports, storage, and maritime transport. This would ensure Iraq’s greater ability to manage its exports and reduce its vulnerability to the fluctuations of shipping markets and regional crises.
almaalomah.me
