(MENAFN- Iraq Business News)
AD Ports Group 's (ADPORTS) 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 Cluster and SAFEEN Group, AD Ports Group, said:
'We are pleased to complete this new agreement to support a major fuel oil transport and storage project in Iraq. The energy sector is an important growth market for SAFEEN Group, and this project demonstrates our expertise in this area as well as the extent and sophistication of our fleet.
'At the direction of our wise leadership, SAFEEN Group is expanding its global footprint to provide key maritime services to companies around the world. This agreement underlines our capacity to tailor solutions to the specific needs of companies in the oil and gas industry and marks an important extension of our presence in Iraq.'
Fadie Fouad, CEO Amaan Baghdad Company, said:
'We have selected SAFEEN Group based on its comprehensive suite of world-class marine services and the expertise of the dedicated team who will manage this project. The global fuel oil market has been volatile in 2022, and this additional storage capacity will support Iraq's competitive offering.'
In addition to this new agreement, SAFEEN Feeders supports a weekly container service that connects Iraq with global markets. The company continues to look for opportunities to support the growth and diversification of maritime trade for Iraq.
(Source: AD Ports)
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