SOMO announces an agreement to export oil with pre-payment

Baghdad, Director of the National Oil Marketing Company (SOMO) Alaa Al-Yasiri announced that an agreement had been reached to export oil by pre-payment.

Al-Yasiri said in a press statement: “SOMO is an intermediary company and not the owner of oil, and it is the only company authorized to export and import oil products and crude oil in surplus.”

He added, “Iraq is the second largest source of crude oil in OPEC, and that the OPEC agreement positively affected Iraq.”

He pointed out: “Iraq was able to contract with the largest government companies in the markets of India, China and Korea,” indicating that Iraq obtained two billion dollars at zero interest, with a premium over the price due to the pre-sale, pointing out: “A Chinese company won the oil pre-sale contract.

Al-Yasiri said: “Most of the contracts indicate that the region’s oil is sold at a price less than 6 to 9 dollars than what is sold through SOMO, pointing out that the quantities of oil exported from the region through the Turkish port of Ceyhan amount to 430 thousand barrels per day, adding that “SOMO has the ability to absorb quantities of the region’s oil for export.”

He explained that the 2021 draft budget obliges the regional government to deliver 250 thousand barrels, and the oil marketing company does not have differential prices, but rather fixed prices according to the market.”

 

Source: National Iraqi News Agency