QatarEnergy and Iraqi state trading company SOMO are offering oil shipments through tenders that require buyers to load the cargo within the Strait of Hormuz.
The deal puts different grades of Qatari and Iraqi crude oil on the market for shipments scheduled for September and October. The terms agreed upon by both companies concentrate these operations at facilities located along this strategic maritime route.
SOMO offers Iraqi crude for loading in September
For its part, SOMO made the grades available to buyers Basrah Medium and Basrah Heavy for loading during September. Shipments can be picked up from the oil terminal from Basra or by means of the single-point mooring system and its associated facilities.
In addition, there are offers to acquire the Iraqi oil the transit routes will remain open until August 26, the operation comes after Iran authorized the transit of several Iraqi oil tankers through the Strait of Hormuz. The authorization followed requests made by Baghdad through various channels.
QatarEnergy offers three grades of crude for September and October
Meanwhile, QatarEnergy launched its own tender to market Al Shaheen, Qatar Marine, and Qatar Land grades. Shipments are scheduled for September and October and will need to be collected from the respective Qatari loading ports.
In this case, Qatar Energy is offering the oil under FOB terms, which means the cargo will be delivered on board at the designated port of loading. Qatar Energy’s tender remains open until August 25, one day before the scheduled closing date for bids to purchase the oil traded by SOMO.
The Strait of Hormuz is the hub for cargo operations
Furthermore, the conditions of both tenders place the Strait of Hormuz at the heart of these crude oil trading operations. In the Iraqi case, the permit granted for the transit of certain tankers allows the movement of cargoes linked to the Basra facilities.
QatarEnergy, meanwhile, is maintaining the cargo of Al Shaheen, Qatar Marine, and Qatar Land from their respective ports in Qatar. In this way, the two tenders place different grades of Iraqi and Qatari oil on the market for the coming months under specific loading conditions within the Strait of Hormuz.
Source: Agbi
Photo: Shutterstock
