Following a more than 70% drop in postwar revenues, Iraq has begun exporting crude oil through Syria by tanker truck, seeking an alternative to the blocked Strait of Hormuz.
Baghdad: Iraq has started exporting crude oil using tanker trucks through neighboring Syria. The move comes as the country’s oil revenue declined by more than 70% last month compared to February due to the ongoing war in the Middle East.
About 90% of Iraq’s budget revenue comes from oil exports. The conflict has severely disrupted energy markets, particularly after Iranian action largely closed the strategic Strait of Hormuz.
This waterway was previously Iraq’s main export route. In a statement, the Iraqi Oil Ministry said Syria would “ensure safe passage” of oil and exports would “gradually” increase.
An Iraqi oil sector source said 178 tanker trucks filled with fuel oil had arrived at the Syrian Baniyas port refinery. This shipment is part of an initial phase that includes an estimated 299 trucks.
Safwan Sheikh Ahmed, spokesman for the state Syrian Petroleum Company, confirmed the first batch entering through the al-Tanf border crossing. He said the oil would be offloaded at Baniyas and transferred to tankers for onward export.
“The initial shipment, consisting of 299 tankers, will enter Syria in batches, with the second batch expected to arrive soon,” he told AFP. The announcement coincides with a clean revenue report from Iraq’s State Oil Marketing Organization (SOMO).
Director Ali Nizar said Iraq generated revenue of about 28% in March compared to February. Oil expert Assem Jihad questioned the feasibility of the Syrian route, noting that it is too expensive and can only secure exports of five million barrels per month.
He said the agreement with Syria would last only for three months, from April to June. Before the war, Iraq exported 3.5 million barrels per day.
Last month, Iraq also announced it had resumed limited oil exports of 250,000 barrels per day through Turkey’s Ceyhan port.
