Iraq Moves to Diversify Oil Exports via Syria Amid Hormuz Disruptions

Iraq Moves to Diversify Oil Exports via Syria Amid Hormuz Disruptions

Iraq is preparing to export crude oil and naphtha through Syrian ports after the Iran war disrupted its main Gulf shipping routes, according to Iraqi and Syrian energy officials and refinery sources, Reuters reported.

The move expands an existing arrangement under which Iraq has been exporting fuel oil via Syria’s Mediterranean port of Baniyas following the effective closure of the Strait of Hormuz, which significantly curtailed export routes for OPEC’s second-largest producer.

Officials said the plan to diversify export routes, including through Syria, will continue even after the conflict ends and Hormuz reopens, as part of a government strategy to reduce reliance on southern export terminals. Before the war, Iraq exported around 3.6 million barrels per day (mmbbl/d), with about 3.4 mmbbl/d shipped through Basra.

Oil ministry spokesperson Saleem al-Rikabi said state marketer SOMO is continuing discussions with Syria to expand cooperation, while Syrian Petroleum Company confirmed ongoing operations at Baniyas despite expectations of the strait reopening.

Syria is set to open two additional unloading areas and new facilities at Baniyas within a week to handle Iraqi crude and naphtha. The port can currently process around 900 tanker trucks per day, with initial crude flows expected at about 50,000 bpd once loading infrastructure is ready.

Tanker-truck exports are expected to begin in early July, with SOMO also planning to establish offices in Baniyas.

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Fatma Ahmed 2665 Posts

Fatma Ahmed is a staff writer with six years’ experience in Journalism. She is working in the field of oil and gas for four years. She also worked in the field of economic journalism for 2 years. Fatma has a Bachelor Degree in Mass Communication.

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