Iraq signed a joint venture agreement for the shipment and trade of oil

OPEC member Iraq signed a joint venture agreement with a shipping company owned by Arab countries to transport, store and trade crude oil and petroleum products, according to official documents and sources in the oil sector.
Oil producers in the Middle East have begun to buy and sell oil to boost their revenues. A sharp fall in crude oil prices since mid-2014 has pushed the sector to become more efficient and more focused on the trade side.
The joint venture, the Iraqi Oil Transport and Trading Company, will carry out a range of activities, including oil products and ship leasing, the establishment of oil terminals, the provision of various marine services and the supply of fuel to ships, the company said in a statement.
Isot is owned by the state-owned Iraqi Oil Tankers Company and the Arab Maritime Oil Transport Company, in which Arab oil exporters such as Saudi Arabia, the United Arab Emirates and Kuwait hold stakes.
Iraq’s oil tankers have a 22.5 percent stake in Isot, according to a 20-year contract signed by Isut. Isot said in a statement that its establishment was based on the vision of the Iraqi oil ministry to boost the activities of the oil tankers and the Arabian Sea to transport oil in shipping, maritime services and oil trading. Is also one of the Ministry’s initiatives to upgrade national oil companies to international standards.
Weisut, which will soon begin supplying ships with fuel at the country’s southern ports, is the second joint oil project recently established by Iraq.
Oil sources in the oil sector said Iraq’s state oil marketing company Sumo and Russia’s Litasco had established a trading company in Dubai to market crude and could expand its operations to include oil and petrochemical products.
“The new project will have exclusive rights to the transportation of crude and oil products,” he said, adding that he will develop other projects, including trade with fuel oil and products, and may eventually be able to handle crude oil allocations.
He said Esot would be based in Dubai with plans to open offices in Singapore and other centers. The company currently has about 25 employees and plans to hire 50 employees in Dubai by the end of the year.
The company is in talks to build a storage facility for crude oil and oil products in Iraq over the next few years, the source said.
Isot says it is in a position to invest and gradually acquire a large fleet to transport most of Iraq’s crude to end-users at competitive prices.
The company will also set up a naval academy to train Iraqis to eventually form up to 85 percent of its crew.
The Organization of Arab Petroleum Exporting Countries (OAPEC) established the Arab Maritime Oil Company, which contributes to the ownership of Isot, in 1973. Saudi Arabia is the largest shareholder with a share of 15.595 percent, while Iraq’s share is 13.657 percent, according to the company’s website.
Kuwait has 15.484 percent, UAE 14.175 percent, Qatar 14.776 percent, and other countries such as Libya, Algeria, Bahrain and Egypt.

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