Iraq opens crude exports to local + international companies in diversification of oil routes

Iraq is diversifying how it gets its crude to market, after the country’s Cabinet approved a temporary three-month mechanism, effective 1 September, allowing crude exports through specialized local and international companies across multiple ports, the Arabic press reports. The move is designed to expand export capacity and diversify shipping routes as Hormuz risk continues to weigh on regional flows.

Baghdad is working every angle: Adnoc has been shuttling Iraqi crude across Hormuz using the same short-haul strategy that it used to transport its own barrels. It is also considering land routes as Iraq’s Oil Ministry separately agreed with a global consortium led by Chevron to build a crude pipeline from Basra to Iraq’s far north with capacity of up to 2 mn bbl / d. Iraq has also expanded its shipping routes to include a one-year agreement with Ankara and trucking fuel oil to Syria’s Baniyas.