Exclusive: SOMO seeks safe Hormuz passage for Iraqi oil exports

Shafaq News- Baghdad

Iraq’s State Organization for Marketing of Oil (SOMO) is negotiating with US and German shipping companies to secure passage for crude exports through the Strait of Hormuz using Iraqi-flagged tankers, a government source told Shafaq News on Monday.

The source said the US company rejected Baghdad’s requirement to fly the Iraqi flag on its tankers, leaving the two sides without an agreement. The German company, however, agreed to the flag requirement while transporting crude from Iraqi ports.

“Understandings with Iran would allow Iraqi oil shipments to pass through the strait without transit fees.”

Baghdad must also secure US authorization to complete the transit arrangements. The source expected Iraq to obtain approval soon, amid US sanctions targeting entities linked to Iranian shipping and insurance mechanisms in Hormuz.

Read more: SCOOP: Iraq in talks with US-Iran over Hormuz oil shipments

Prime Minister Ali Al-Zaidi’s deadline for the Oil Ministry to resolve the crude export crisis could be extended for another week, according to the source. Shipping companies are seeking higher freight rates and additional insurance guarantees to account for the risks associated with passage through the waterway.