Iraq Sets Up Oil Shipping, Trading Joint Venture
24th August 2017
O PEC member Iraq has formed a joint venture with a shipping company owned by Arab states to transfer, store and trade crude and oil products, according to official documents and industry sources.
Middle East oil producers are venturing into buying and selling oil to boost their incomes, as a sharp drop in crude prices since mid-2014 has forced the industry to become more efficient and commercially focused, Reuters reported.
The venture, Al-Iraqia Shipping Services and Oil Trading, will handle a "plethora of activities ranging from trading of petroleum products, ship chartering, oil terminals, various marine services and bunkering", according to a company statement sent to Reuters.
AISSOT is owned by state firm Iraqi Oil Tankers Company and Arab Maritime Petroleum Transport Company, a pan-Arab company in which Arab oil producers such as Saudi Arabia, the UAE and Kuwait hold a share.
IOTC owns a stake of 22.5% in AISSOT, according to a copy of the signed 20-year contract seen by Reuters.
"Formation of AISSOT is based on Iraqi Oil Ministry vision to further strengthen activities of two major entities i.e. AMPTC and IOTC in the field of shipping, marine services and oil trading," the company said in a statement.
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