Iraq launches tender move for oil exports bypassing the Strait of Hormuz
State oil marketing company SOMO has launched a sales process via ship-to-ship transfer off the coast of Oman to mitigate risks in the Persian Gulf.
Iraq's state oil marketing company SOMO has opened an official tender to export crude oil via ship-to-ship transfer near the coast of Oman, bypassing the Strait of Hormuz.
SOMO's New Tender Move
Iraq's state oil marketing company SOMO is offering Basrah Medium and Basrah Heavy crude oil for sale via tender, which can be received through ship-to-ship transfers near the coast of Oman next month.
This offer represents a strategic policy shift for Iraq, which previously offered steep discounts to convince traders to load oil in the inner parts of the Gulf.
The Role of Global Energy Companies
While it remains unclear how SOMO plans to definitively ship the crude oil out of the Gulf, many groups, including Vitol Group and TotalEnergies, are taking an active role in the process.
TotalEnergies CEO Patrick Pouyanne stated that his company is among the largest traders of this Middle Eastern producer's oil.
Status of Shipments in the Gulf
The offer to deliver Iraqi oil outside the Strait of Hormuz clearly demonstrates that crude oil flows from the Persian Gulf continue uninterrupted despite ongoing threat of attacks.
Tankers in the region often pass through the strait with their transponders turned off to avoid detection, and heavy shipments support the stability of global oil prices.
Separate Tender for Fuel Oil
In addition to the crude oil move, SOMO conducted a separate tender process last week for fuel oil products eligible for delivery either inside or outside the Persian Gulf.