Total: $20 million cost for super tanker carrying oil through Hormuz
Patrick Pouyanné, chief executive of the French oil company TotalEnergies, stated that the cost of shipping oil through the Strait of Hormuz on a supertanker amounts to approximately $20 million, or roughly $10 per barrel, allowing for substantial profit margins for traders and shipowners.
He noted that the company purchases oil from within the Gulf at prices ranging between $50 and $60 per barrel, as producers seek to offload their supplies and reach global markets.
Speaking at an energy conference in Norway, the TotalEnergies CEO pointed out that continued oil flows through the Strait of Hormuz have helped keep global prices below the $100-per-barrel mark, while fuel markets, particularly for gasoline and diesel, continue to face pressure due to supply shortages.
Pouyanné said the company will invest in expanding the oil export pipeline in Fujairah, United Arab Emirates, and will continue its investments in the Middle East despite the war involving Iran.
Previously, Pouyanné had emphasized the importance of financing alternative pipelines to transport oil from the Middle East, given the paralysis in the Strait of Hormuz since the outbreak of the US-Israeli war with Iran.
For his part, Hisham Shaaban, a consultant and certified auditor for the International Maritime Organization, as well as publisher of the “Ship’s Officer” magazine and website, said that maritime shipping rates are determined based on vessel type, operational and maintenance costs, in addition to corporate profit margins.
Shaaban explained in an interview with “Al Arabiya Business” that war risk classifications and the targeting of ships have driven maritime insurance premiums and freight rates to record highs, in order to maintain profitability levels.
Regarding oil, he noted that the cost of oil derivatives per barrel is higher compared to crude oil, a increase attributed to the smaller size of tankers transporting them, along with processing and delivery insurance costs.
