Iraq is offering buyers of its crude the option to collect supplies from outside of the Persian Gulf for the first time since the Iran war began, highlighting resilient exports flowing through the Strait of Hormuz.
The country’s state oil marketer, SOMO, is offering Basrah Medium and Heavy that can be collected by ship-to-ship transfer near the Omani coast next month via a tender, according to a document seen by Bloomberg. It’s a change of tack for Iraq, which had been offering large discounts to entice traders and refiners to load its oil deep within the gulf after the conflict started.
Iraq has “an agreement with companies to transport Iraqi crude oil through secure routes for sale outside the strait, with the aim of achieving the highest possible economic benefit for the government,” Oil Ministry Spokesman Salim Al-Rikabi said in a text message.
A number of groups have helped to get Iraqi barrels to global customers during the war, including Vitol Group and TotalEnergies SE. Patrick Pouyanne, the chief executive officer of the French supermajor, said this week that the company was one of the largest traders of the Middle East producer’s oil.
The offer to collect Iraqi oil outside of Hormuz underscores how crude continues to flow out of the Persian Gulf, despite the persistent threat of attack. Tankers are often transiting the narrow waterway with their transponders off to avoid detection, and robust shipments are helping to keep oil prices in check.
SOMO also offered fuel oil in a separate tender last week that can be picked up either inside or outside the Persian Gulf.
source: RIGZONE