Iraq Releases Tanker Detained in Smuggling Investigation

The Liberian-flagged tanker that Iraq detained last week as it seeks to crack down on oil smuggling in the Persian Gulf has been released and is back underway. The AIS signal from the tanker Liliana (158,300 dwt) shows the vessel making 8 knots bound for the UAE.

Iraqi forces boarded the tanker on August 6 while it was 26 nautical miles from Iraq’s coast near Basra’s oil terminal. It was laden with 93,000 metric tons of fuel oil, and reports said the Iraqi forces wanted paperwork to document the vessel and the loading of its cargo. It was part of a larger inspection and crackdown on suspicious tanker activity in the region. A total of three tankers were inspected that day.

The Liliana was detained when it could not provide satisfactory documentation. The reports said Iraq had given the owners 48 hours to provide proper documentation or the matter would be referred to the courts. Reuters is reporting that the court reviewed the matter and did not find a breach, and it ordered the ship released.

Under pressure from the United States, Iraq has increased its inspections of tankers. There are accusations that Iran is attempting to blend its oil with additional product from Iraq or elsewhere in an attempt to disguise the origins and avoid the sanctions. Iraq reported that it has seen an increase in the number of tankers manipulating their AIS signal in the region and recently listed tankers that would be barred from Iraq because of suspicious activity.

Liliana appears to be managed by a company based in the UAE. Equasis shows no inspections on the vessel since 2023, when it was sold by India’s Great Eastern Shipping to a buyer registered in Dubai. Babylon Navigation is listed as managing nine tankers, including the Liliana.

Iraq’s efforts come as Iran has also increased its efforts to stop fuel smuggling. Iran reported yesterday that it had arrested another smaller tanker. It, however, immediately arrested the 17 crewmembers aboard and turned them over for prosecution. In April, Iran sentenced crewmembers to six years in jail for their role in smuggling fuel out of the country.