The Kingdom's Ministry of Energy issued a clarification on Tuesday regarding statements made during an Iraqi Parliament session concerning the purchase of oil tankers and linking it to the rising costs of Iraqi oil shipping. The Ministry clarified in a statement
that the information presented by Iraqi Oil Minister Basim Mohammed Khudair Al-Abadi and the Chairman and General Manager of Iraq's State Oil Marketing Organization (SOMO), Ali Nizar Al-Shatri, during the parliamentary session, regarding the Kingdom's purchase of 25 oil tankers
and linking it to increased Iraqi oil transport costs, is incorrect. The Ministry affirmed that the Kingdom did not acquire the aforementioned 25 tankers. It added that this clarification in no way detracts from the Kingdom's full right to make any
commercial and investment decisions it deems appropriate, in accordance with its needs and interests. The Ministry indicated that the sharp rise in oil transport costs is due to various factors differing from what the Iraqi officials mentioned, including military escalation in
the region, declared Iranian attacks on ships, and navigation disruptions in the Strait of Hormuz. Consequently, this has led to a sharp increase in shipping risks and insurance costs, coupled with a decline in the number of tankers willing to
operate in the area. The Ministry concluded by affirming that these circumstances have driven shipping costs to exceptional levels, and attributing the rise in Iraqi oil transport costs to the Kingdom does not reflect the actual reasons behind this increase.
