Parliamentary Oil Committee Calls to Buy Iraqi Oil Tankers to Reduce Impact of Strait of Hormuz Crisis

The parliamentary oil committee announced a serious move to buy state-owned Iraqi oil tankers, a step the committee said will help mitigate the impact of the Strait of Hormuz closure and save millions of dollars for Iraq's treasury.

Committee member Jassim Al-Moussawi said the committee will meet tomorrow, Monday, with the oil minister to discuss decisions issued by the ministry's advisory board, which include the move to secure oil tankers.

Al-Moussawi added that Iraq should own its own tankers instead of relying on foreign companies and states to transport crude oil and its derivatives, especially after maritime transport costs rose to about half the value of exported oil as a result of the Strait of Hormuz crisis.

He stressed that the procedures required to purchase the tankers must be practical and not 'ink on paper,' affirming that the goal is to own the largest shipping fleet in the region, and that there are contacts with international companies to equip Iraq with three to five tankers.

Al-Moussawi indicated that Iraq can, in a short period, import the tankers and pay the sums allocated for contracting them, which will lead to generating financial revenues for the state treasury reaching millions of dollars.

For his part, Oil Minister Basim Muhammad Al-Abbadi affirmed the necessity of accelerating the procedures to purchase the tankers while presiding over a session of the ministry's advisory board, according to a ministry statement, explaining that buying the tankers would have a positive effect on oil export operations and on generating revenues supporting the state budget.

Al-Abbadi said the ministry faces two important objectives amid the Strait of Hormuz crisis, including the issue of oil exports, noting that the ministry achieved notable success last month and this month with levels comparable to those before the crisis.