UAE’s ADNOC helps keep Iraqi oil flowing through Strait of Hormuz

Baghdad (IraqiNews.com) — Iraq is collaborating with the UAE’s ADNOC and other international energy merchants to maintain crude exports flowing through the Strait of Hormuz, as Baghdad seeks methods to secure key oil income amidst ongoing disruptions to Gulf shipping. Iraq’s State Organization for Marketing of Oil (SOMO) reported that Abu Dhabi National Oil Company is one of the firms purchasing Iraqi petroleum and successfully transporting shipments over the strait. According to Bloomberg, ADNOC’s trading arm is supplying Iraqi oil to Asian refiners via a shuttle system meant to mitigate the dangers involved with shipping bigger tankers into the Gulf. Under the deal, smaller boats carry Iraqi Basrah oil via Hormuz before transferring the cargo to bigger tankers for delivery to Asian markets. Tracking devices may also be turned off throughout sections of the route as ships negotiate the increasingly tough maritime environment. The agreement is especially significant for Iraq, which relies heavily on oil exports to fund government expenditures. The disruption at Hormuz has placed pressure on Baghdad to find methods to preserve exports while also ensuring the funds required to satisfy wages and other governmental commitments. ADNOC’s cooperation gives Iraq another path to keep petroleum to overseas buyers while regular tanker operations are limited. The move also follows the UAE’s exit from OPEC and OPEC+, which has given Abu Dhabi more control over its oil production and commercial strategy as it aims to boost output, trading activity, and energy income. For Iraq, the immediate imperative is different but as important: keep crude flowing. Baghdad is seeking longer-term options via Turkey and even the Mediterranean to minimize its reliance on Hormuz. However, until such routes are completely built, Iraq remains very vulnerable to Gulf disturbances. The utilization of shuttle tankers and ship-to-ship transfers provides a temporary but potentially essential solution, allowing Iraq to keep access to Asian clients while also preserving the oil earnings that underpin much of the country’s economy. The post UAE’s ADNOC helps keep Iraqi oil flowing through Strait of Hormuz appeared first on Iraqi News.