Baghdad (IraqiNews.com) – The Iraqi Oil Ministry is planning to purchase large oil tankers to increase its ability to transport and market crude oil internationally.

The strategic move seeks to improve financial returns from crude exports while lowering transportation expenses.

The spokesperson for the Oil Ministry, Salim al-Rikabi, told the state-run Iraqi News Agency (INA) on Monday that the Iraqi tanker fleet currently comprises six small and medium-sized tankers.

Al-Rikabi explained that the ministry is also considering establishing partnerships with specialized firms in the maritime transport sector.

Crude oil can be stored or transported across the Strait of Hormuz by renting tankers from other businesses, according to al-Rikabi.

The Iraqi Ministry of Oil is considering the purchase of 10 oil tankers as part of its efforts to develop its export infrastructure and expand options for delivering shipments to global markets.

The step is part of the government’s efforts to strengthen the role of the Iraqi Oil Tankers Company (IOTC) and leverage the ownership of maritime transport assets, which would provide greater flexibility in marketing crude oil and managing shipments.

The plan is considered crucial given Iraq’s desire to improve the terms of its oil sales and reduce the discounts associated with certain existing marketing and transportation arrangements. 

Iraqi Oil Minister Basim Khudair revealed recently that the ministry is considering the purchase of 10 supertankers, with an estimated total cost of $2 billion, according to Attaqa News.

According to Khudair, the projected fleet will have a total capacity of 10 million barrels since each tanker has a capacity of around one million barrels.

Owning these tankers would increase export earnings; estimates indicate that Iraq might save between 30 percent and 40 percent on the losses it presently suffers from price reductions.