For the first time in decades, Iraq transports a massive oil shipment out of the Strait of Hormuz.
For the first time in decades, Iraq transports a massive oil shipment out of the Strait of Hormuz.
10-4-2026
The Iraqi Oil Tankers Company announced on Saturday the completion of a maritime transport operation, the first of its kind in decades, which involved shipping two million barrels of Iraqi crude oil using a giant tanker.
The shipment was transported beyond the Strait of Hormuz, as part of an ambitious government plan to develop logistical capabilities and strengthen national control over the oil supply chain.
The company’s general manager, Ali Qais, told the Iraqi News Agency (INA) that this executive task came based on direct instructions from Prime Minister Ali al-Zaidi, and under the supervision and follow-up of the Minister of Oil.
A fundamental shift in marketing mechanisms
Qais explained that this step represents a qualitative leap in Iraqi oil sales, shifting from the “Free on Board” (FOB) formula that had prevailed for decades to a direct transport and delivery method outside the strait. He noted that the company held extensive discussions with specialized international companies and, for the first time, secured a Very Large Crude Carrier (VLCC) to carry out this task, opening new horizons for the Iraqi State Oil Marketing Company (SOMO) to benefit from more competitive and flexible sales and pricing opportunities in global markets.
An ambitious plan to own a naval fleet
Regarding future directions, the Director General revealed that there are ongoing directives to discuss with the relevant authorities to find suitable opportunities, as quickly as possible, to purchase and own specialized crude oil tankers.
Qais stressed that the strategic goal of this step is to develop the infrastructure and operational capabilities of the “Iraqi Oil Tankers Company” so that it can compete with similar companies in the countries of the region, and restore Iraq’s leading role in managing maritime transport operations for its oil wealth.
burathanews.com
