Iraq’s state oil marketer SOMO is considering buying secondhand tankers to reduce its reliance on chartered tonnage for crude exports through the Strait of Hormuz, according to Lloyd’s List.
The move would give SOMO greater control over Iraqi crude shipments as access to third-party tanker capacity for Hormuz voyages becomes more difficult.
The plan follows a fleet strategy outlined by Iraq’s Ministry of Oil in August. Iraqi Oil Tankers Company, or IOTC, was tasked with considering partnerships with tanker owners, vessel acquisitions through deferred-payment arrangements and chartering ships in coordination with SOMO.
The strategy is intended to strengthen Iraq’s ability to transport crude oil and petroleum products, including through export routes that do not depend on the Strait of Hormuz.
Iraqi oil minister Bassem Mohammed Khudair said IOTC owned six relatively small, older tankers and wanted to operate larger and more modern vessels capable of carrying up to 2m barrels.
Iraq’s crude exports recovered to about 2.34m barrels per day in August from around 1.35m bpd in July as flows resumed after disruption to shipping through Hormuz.
SOMO has not formally announced a secondhand tanker acquisition. The number and type of vessels under consideration, their age, purchase price, sellers and other counterparties have not been disclosed.
SOMO is an Iraqi state-owned company under the Ministry of Oil responsible for marketing Iraqi crude oil and gas in domestic and international markets and handling exports of surplus petroleum products and imports required to meet domestic shortages.
IOTC is an Iraqi Ministry of Oil company providing maritime transportation services for crude oil and petroleum products.