India to receive first Iraqi oil shipment in five months

One of Bharat Petroleum’s refineries. Photo: Bharat Petroleum Baghdad (IraqiNews.com) – India is preparing to receive its first shipment of Iraqi oil in five months, a development reflecting the return of Iraq’s crude oil flows to one of Asia’s largest oil markets, despite ongoing shipping challenges across the Strait of Hormuz. India’s Bharat Petroleum expects to receive the shipment within the next few days. The tanker carrying Iraqi oil has already passed through the Strait of Hormuz and arrived in Fujairah, UAE, for a ship-to-ship transfer, according to Reuters. Bharat Petroleum’s Chief Financial Officer, Vetsa Ramakrishna Gupta, said that the company secured a vessel to load the Iraqi shipment and transport it to Fujairah. There, the oil will be transferred from ship to ship before reaching the company’s refineries. These arrangements reflect the efforts of Asian refiners to find flexible logistical solutions for securing crude oil at a time when transportation cost, insurance, and tanker availability have become crucial factors in determining the viability of purchasing shipments from the Gulf region. The Indian company typically requires around two million barrels of Iraqi oil per month, making a consistent supply from Baghdad crucial to meeting its refinery’s crude oil needs. Bharat Petroleum has not disclosed the name of the vessel used to transport the shipment but stated that the ship’s owner agreed to load the crude and proceed to Fujairah for a ship-to-ship transfer. Iraq is one of the countries most affected by disruptions in the Strait of Hormuz, given that a significant portion of its oil exports depend on ports located on the Arabian Gulf.