Iraq Ready To Create Own Tanker Fleet; Gain Supremacy in OPEC

Iraq, the second largest producer of oil among OPEC nations is set to create its own oil tanker fleet. After creating its own fleet of tankers, Iraq aspires to sell its crude oil on a delivered basis. After this move, Iraq shall be able to manage the shipping of crude oil to the buyers. 

OPEC is an intergovernmental Organisation of oil-producing developing nations. OPEC nations share around 81.5% of the world’s crude oil reserves. The Middle East accounts for about 65.5% of the OPEC total. OPEC nations include Algeria, Angola, Ecuador, Gabon, Iraq, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, Equatorial Guinea, United Arab Emirates and Venezuela.

Iraq to Have Own Fleet of Carriers

At present Iraq sells its oil and related products on ‘free on board basis.’ Under this scheme, Iraq has to bear the costs of transportation and loading to the shipment of the port. After having its own fleet Iraq will be able to monitor its exports better.

The government-owned Iraq Oil Tanker Company has finalized deals with an Iraqi Shipping Company. The Al-Iraqia Shipping Services and Oil Trading, the Shipping Company will help build the fleet and train the staff. This firm is a joint venture of IOTC and Arab Maritime Transport Petroleum Company. It’s been set up to facilitate the industry and government in Iraq.

The Iraqi Company plans to buy second-hand tankers and order new ones in the meantime. Iraq might end up buying as much as 40-50 very large crude oil carriers. This would boost Iraq’s exports and profits made from the crude oil.

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