Iraq has begun rerouting its oil exports by transporting crude oil via tanker trucks to Syrian ports, aiming to reduce its reliance on the Strait of Hormuz amid the ongoing regional tensions.
The disruptions in the Mideast have severely impacted Iraq's oil exports. In March, the country's crude oil exports fell sharply to about 18.6 million barrels, down from 99.8 million barrels in February.
To mitigate the impact of the Gulf shipping disruption, Iraq's State Oil Marketing Organization (SOMO) has contracted to move approximately 650,000 tons of fuel oil per month through Syria from April to June as a trial phase, which could pave the way for longer-term arrangements.
Under the agreement, Iraqi oil is transported by road to Syria's Baniyas oil terminal on the Mediterranean coast and then loaded onto marine tankers for export.
"I am a tanker driver. I transport oil from Iraq to Syria. We face no problems on the road, and the government provides all the necessary facilities. We load the oil from Al-Daura in Baghdad or from Basra, then head to Syria via the Al-Waleed border crossing towards Baniyas, Homs, and Aleppo. The Syrian side also provides everything, including protection," said Hussein Ali, a fuel truck driver
"We are truck drivers transporting oil for export to Syria. Traffic flows very smoothly and is well organized at both the Iraqi and Syrian border crossings. The movement is extremely heavy," said another truck driver Sabah Hussein.
Most of the Iraqi tankers enter Syria through the al-Tanf–al-Waleed border crossing, which had been closed since 2015 when the Islamic State group controlled large areas along the Syria-Iraq border.
"Following the signing of the agreement between the Iraqi and Syrian governments, Iraq's Oil Marketing Company began exporting oil through the Al-Waleed border crossing at a rate of approximately 500 to 600 tanker trucks per day, loaded with Iraqi oil destined for the Syrian port of Baniyas," said Khaled Khalaf, an advisor to the governor of Anbar for border crossings.
Typically, Iraq exported around 100 million barrels of crude oil monthly. However, this volume has been severely reduced since the outbreak of the Mideast conflict on Feb. 28, which subsequently led to the closure of the Strait of Hormuz, a vital corridor for global energy supplies.
Iraq's economy relies heavily on crude oil exports, which account for about 90 percent of the country's revenues.
Iraqi oil convoys reroute through Syria as Hormuz blockade disrupts Gulf shipping
