Iraq Transports 2M Barrels Past Hormuz on VLCC in Historic Shipping Shift
The Iraqi Oil Tankers Company (IOTC) has successfully transported two million barrels of domestic crude oil on a Very Large Crude Carrier (VLCC) past the Strait of Hormuz, marking the first time in decades that Iraq has conducted independent crude transportation beyond this strategic maritime chokepoint.
This operation is part of IOTC's efforts to shift a portion of Iraq's petroleum commercialization away from traditional delivery at Basra offshore terminals and towards delivery points beyond the Gulf. The move aims to grant the State Organization for Marketing of Oil (SOMO) elevated commercial flexibility, capturing premium pricing benchmarks, mitigating regional maritime transit risk premiums for buyers, and optimizing sovereign export revenues.
IOTC Director General Ali Qais emphasized that executive directives are actively steering the company toward the expedited procurement and outright ownership of its own fleet of dedicated crude oil supertankers. This acquisition drive seeks to restore Iraq's sovereign blue-water tanker capabilities, modernizing IOTC's logistics infrastructure to compete directly with national maritime shipping lines across the Gulf and broader Middle East.