In a strategic move to secure its foreign currency, the Iraqi Government has agreed with Syria on an alternative land route to export oil. The objective is to avoid the vulnerability of the Strait of Hormuz, mobilizing barrels via trucks toward the Mediterranean while the reactivation of key pipelines is evaluated.

Baghdad has decided to play its cards to avoid remaining hostage to geopolitical instability. Given the closure and tension in the Strait of Hormuz, the Iraqi Government formally requested the help of Syria to channel its exports of crude and fuel oil toward global markets.

Youssef Qiblawy, CEO of the state company Syrian Petroleum, confirmed that the massive transport of crude by road is expected to begin in mid-October. This logistics already has an operational precedent, as Iraq already uses the Syrian port of Baniyas for part of its merchandise.

Indicator Key Data
Average Iraqi exports 2.7 million barrels per day
Volume per truck Approx. 220 barrels
Current flow (distillates) 1,000 trucks daily

Iraq's strategy to diversify its routes includes:

  • Land transport: Sending loaded trucks through Jordan.
  • Storage: Syrian Petroleum will provide specific tanks at the port of Baniyas.
  • Infrastructure: The rehabilitation of a pipeline between Iraq and Syria is being debated, with works planned for the first quarter of next year.

This scenario is not isolated. The war in Syria and regional volatility have pushed other actors to move. In this sense, Saudi Arabia is already holding talks with its customers to offer shipments that avoid the Strait of Hormuz starting next year.

Source: IMAGO