• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 22 mins Sources confirm Trump to sign two new Executive orders.
  • 13 hours CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 30 mins No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 7 hours In a Nutshell...
  • 53 mins Sometimes I Think Trump Supporters on This Forum Are Russians
  • 13 hours A Real Reality Check on "Green Hydrogen"
  • 2 hours Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 2 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 1 day Why Wind is pitiful for most regions on earth
  • 1 day Why Oil could hit $100
  • 13 hours Putin Paid Militants to Kill US Troops
  • 4 hours Where is Alberta, Canada headed?
  • 3 days Coronavirus hype biggest political hoax in history

Iraq Moves To Create Its Own Oil Tanker Fleet

OPEC’s second-largest producer Iraq has taken steps toward selling its crude oil on a delivered basis after it is looking to build its own tanker fleet.

At present, most of Iraq’s crude oil and oil products are being sold on a so-called ‘free on board’ basis, in which the seller pays for transportation of the goods to the port of shipment, plus loading costs.

With a tanker fleet of its own, Iraq could sell crude oil on a delivered basis and manage the shipping of the oil to customers. Other Gulf oil producers sell their oil on an ex-ship basis—which requires the seller to deliver goods to a customer at an agreed port of arrival.

Iraq is now looking to have its own fleet after decades without its own vessels.

The state-held Iraq Oil Tanker Company (IOTC) has struck agreements with Iraqi shipping company Al-Iraqia Shipping Services & Oil Trading (AISSOT) to help build the fleet and train staff, IOTC’s general manager Hussein Allawi told Platts on Thursday.

AISSOT is a joint venture company set up by IOTC and Arab Maritime Petroleum Transport Company (AMPTC) to meet the growing needs of the Government and industry in Iraq. AISSOT is mandated to invest in the creation of world-class strategic infrastructure for oil and gas, shipping logistics, and trading operations, according to its website.

“They [AISSOT] are promoting their crude export and own transportation volume, so that more will be handled by their national shipping arm,” a shipping executive at a North Asian refiner told Platts, commenting on the Iraqi efforts to manage their own fleet and exports.

According to the executive, the Iraqi company plans to buy secondhand tankers and order new-builds, possibly buying as many as 40-50 very large crude carriers (VLCCs).

AISSOT currently owns two VLCCs, shipping sources told Platts.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News