Saudi Arabia: Information provided by Iraq's Oil Minister regarding the Kingdom's purchase of 25 tankers is incorrect

Riyadh - 22 - 9 (KUNA) -- The Saudi Ministry of Energy confirmed on Tuesday that the information provided by Iraqi Oil Minister Basim al-Abbadi regarding the Kingdom of Saudi Arabia’s purchase of 25 oil tankers and linking this to the rise in the cost of transporting Iraqi oil is incorrect, clarifying that the Kingdom did not purchase the aforementioned tankers.

In a clarifying statement commenting on remarks made by Minister al-Abbadi and Ali al-Shatri, the Minister of Engineering, Chairman of the Board of Directors and General Manager of the Iraq Oil Marketing Company (Somoco), during a session of the Iraqi Council of Representatives, the ministry stated that this clarification in no way diminishes the Kingdom’s full right to make any commercial and investment decisions it deems appropriate in accordance with its needs and interests.

The ministry added that the sharp increase in oil transportation costs is attributable to factors different from those cited by the Iraqi Oil Minister and the General Manager of Somoco, including the military escalation in the region, Iran’s declared attacks on ships, and disruptions in maritime traffic through the Strait of Hormuz, which have led to a sharp rise in shipping risks and insurance costs, as well as a decline in the number of tankers willing to operate in the region.

The ministry noted that these conditions have pushed shipping costs in the region to exceptional levels, and that attributing the rise in the cost of transporting Iraqi oil to the Kingdom does not reflect the actual causes behind this increase. (End)