BASRA, Iraq: Outside a depot near Basra, hundreds of tanker trucks queue to load Iraqi crude oil bound for the Syrian port of Baniyas via an overland desert route which had been largely unused for decades.
Iraq, OPEC’s second-largest producer, has been working to find alternative export routes for its oil since the Strait of Hormuz, its usual outlet, was disrupted by the Iran war.
Despite higher transportation costs, the overland route has also regained appeal because of an end to years of conflict in Syria, two people close to the matter told Reuters.
Although Iraq exports most of its crude from Gulf terminals, the Syrian route has become a small but strategically significant alternative for moving cargoes of heavy crude.
Since last month, Qatari energy group UCC Holding has been shipping Iraqi crude oil by truck to Baniyas, said Bassem Abdul Karim, director general of state-run Basra Oil Company (BOC).
UCC began shipping 120,000 to 150,000 barrels per day (bpd) under a contract with state oil marketer SOMO, with cargo volumes depending on truck availability, Abdul Karim added.
UCC and SOMO did not respond to requests for comment.
The crude is being trucked to the Mediterranean port of Baniyas from Iraq’s southern oilfields for export to international markets, Abdul Karim added.
