UAE and Iraq firms sign fuel oil transport, storage agreement

UAE and Iraq firms sign fuel oil transport, storage agreement

AD Ports Group’s SAFEEN Group and Amaan Baghdad Company have signed an agreement to support a new project relating to fuel oil transport and storage from Khor Al Zubair and Umm Qasr oil terminals in Iraq. The project represents a significant extension of SAFEEN Group’s portfolio of dedicated products and services into the oil and gas sector and is part of its ongoing expansion in the key market of Iraq. Under the terms of the agreement, SAFEEN Feeders, a subsidiary of SAFEEN Group, will manage the entire project, providing three Very Large Crude Carriers (VLCCs) and one Medium Range (MR) tanker. Working with Amaan Baghdad Company, SAFEEN Feeders will transport fuel oil from terminals in Port of Khor Al Zubair and Umm Qasr South Port to Iraqi territorial waters using the MR tanker. The fuel oil will then be transferred and stored on the VLCCs, which will serve as floating fuel tanks with monthly delivery capacity of 750,000 tonnes. The agreement is secured at competitive rates, providing flexibility for the Iraqi partners, and ensuring a favourable rate of return for SAFEEN Group, which will not engage CapEx in this transaction. Captain Ammar Mubarak Al Shaiba, Acting CEO of the Maritime