Saudi 'Energy': Iraqi Oil Minister's claim that the Kingdom purchased 25 oil tankers is incorrect

- Rising transportation costs are attributed to military escalation, navigation disruptions, and increased shipping and insurance risks

The Saudi Ministry of Energy confirmed on Tuesday that the information provided by Iraqi Oil Minister Basim al-Abadi regarding the Kingdom of Saudi Arabia’s purchase of 25 oil tankers, and its linkage to rising costs for 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-Abadi and Ali al-Shatri, the Chairman of the Board 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 rise in oil transportation costs is due to factors different from those cited by the Iraqi Oil Minister and the General Manager of Somoco, including military escalation in the region, declared Iranian attacks on vessels, disruptions in maritime traffic through the Strait of Hormuz, the consequent sharp increase in shipping risks and insurance costs, and a decline in the number of tankers willing to operate in the region.

The ministry noted that these conditions have pushed regional shipping costs to exceptional levels, and that attributing the rise in Iraqi oil transportation costs to the Kingdom does not reflect the actual causes behind this increase.