Shipping Oil (Iraqi Oil Tanker Company Case Study)

10.2478/bjlp-2023-0000025

Abstract

This research discussed a topic that is one of the most important topics of economic geography, and one of the important pillars of the Iraqi economy in general and the province of Basra in particular, which is the maritime transport of oil adopted by the Iraqi Oil Tanker Company located in the province of Basra and the study showed the beginnings of transporting Iraqi oil abroad and the justifications for the establishment of the Iraqi Oil Tanker Company and the financial revenues resulting from the transfer of Iraqi oil in the event that it is well marketed and the establishment of a maritime transport fleet capable of meeting Iraq's need for the export and import of oil products The role of the Iraqi Oil Tanker Company since its establishment to the present time in transporting Iraqi oil outside the country has also emerged by reviewing its work structure and ways to develop and upgrade it to compete with other countries.

The study showed the economic policy of Iraq and the methods of selling oil, where Iraq relied on the method of selling FOB ^([1]) which depends on the transport of Iraqi oil on foreign tankers in exchange for a small share of the oil tanker company hardly exceeds 16% of the volume of products that are exported abroad, thus depriving the Iraqi economy of large financial returns resulting from the injustice of transporting oil in the case of using the sale of SAF^([2]).

([1])CIF or CAF F0I0C: The term "SAFE" or "CAF" is only a shorthand for the following phrase: Cost. Insurance et fright. In English. This term means that the sale includes, in addition to the price of the goods subject to the contract. In other words, the seller in this type of sale is obligated to ship the goods he sold and then cover them by insuring them against all risks to which these goods are exposed during transportation. The buyer agrees to this initially at the time the contract is concluded. The price incurred by the buyer is a total price that simultaneously includes the value of the goods and the amount of carriage and insurance.

([2] ) FOB B0O0F: Is the sale in which the ownership of the goods is transferred from the seller to the buyer as soon as they are delivered at the port of departure on board the ship and the buyer bears the risk of their destruction or damage during transport unless there is an agreement between the parties to the contrary and is known in English Free on board.

The study also recommended the need to build a large oil tanker fleet with international specifications that helps the company to increase its contribution to the export of oil products in addition to obtaining special approvals for the export of crude oil instead of relying on foreign tankers to develop the reality of the company's situation and reduce Iraq's dependence on other countries in delivering its products to the other countries.