HOUSTON (AP) — A Kurdish oil tanker anchored near Galveston for about a month has finally sailed off, taking its potentially $100 million cargo somewhere else.
A U.S. Coast Guard spokesman told The Houston Chronicle (https://bit.ly/1oqjR47 ) the United Kalavryta has moved from its Gulf of Mexico location where it’s been for about a month. A maritime tracking system stopped receiving a signal from the ship Monday.
It’s unclear if the oil was sold and where the ship went.
The tanker arrived with 1 million barrels of oil pumped from the Kurdish areas of Iraq in July. Iraq considers the oil stolen and has sued to stop its sale. Iraq has also threatened to sue anyone who helps offload it.
In recent weeks, attacks by the Islamic State militant group have overwhelmed Kurdish forces. An industry expert says oil is Kurdistan’s primary source of revenue to arm its soldiers and handle a growing refugee population.
“The Kurds are desperate,” said Charlie Ebinger, director of the energy security initiative at the Brookings Institution. “They are very financially strapped for cash and they want to sell any oil they can to whoever will buy it.”
The month-long wait in the Gulf of Mexico was costly. The average daily rate for a crude oil tanker its size ranges from $20,000 to $27,000, according to data from Clarksons, a London-based shipping services provider.
The oil aboard the ship is worth more than $100 million at international prices. However, given Iraq’s legal threats, the buyer will likely get a discount.
“It’s still a huge legal threat,” said Ed Hirs, who teaches energy economics at the University of Houston. “Anybody who would agree to acquire faces the risk of impoundment, loss of cargo and the loss of the proceeds … and that’s a very serious threat for a buyer and a very valid one, too.”
___
Information from: Houston Chronicle, https://www.houstonchronicle.com
Please read our comment policy before commenting.