SOMO: Kurdistan Regional Government has not delivered any quantities of oil

Baghdad - INA - Nassar al-Hajj

The Oil Marketing Company (SOMO) confirmed today, Saturday, that the Kurdistan Regional Government has not delivered any quantities of crude oil, while referring to the mechanism adopted for allocating quantities of crude oil to international purchasing companies, indicating the reasons for not adopting the method of payment for exporting crude oil. 

The Director General of the Oil Marketing Company (SOMO), Alaa Al-Yasiri, said in an exclusive interview with the Iraqi News Agency (INA): “The Iraqi Ministry of Oil represented by the Oil Marketing Company has invited the contracting companies to purchase Iraqi crude oil and the companies that own service contracts, and they are in their entirety from the major companies. 

He added, "The adoption of the advance payment method came for the purposes of supporting the financial resources of the Iraqi state treasury, which was suffering greatly from the decline in financial revenues to the public budget as a result of the decline in oil prices to very low limits due to the Corona pandemic."

He continued, "The referral was not made at the time, as crude oil prices witnessed a recovery as a result of the decisions of ( OPEC ) and its allies to reduce production."

He pointed out that "the approved mechanism for allocating quantities of crude oil to international companies buying Iraqi crude oil is according to the quantities available for export, which are notified to us by the Ministry of Oil, which changes annually according to a set of technical and logistical factors and in line with the agreement of the OPEC countries. ( OPEC ) regarding Iraq’s share of world production, whereby the Oil Marketing Company shall take all necessary steps to disburse the entire quantities of crude oil intended for export. 

He explained that "the oil marketing company has mechanisms that are distinguished by transparency and integrity and to ensure that the entire quantities available for export are spent in accordance with a tight marketing plan that targets promising markets and in a way that guarantees the largest financial return for the country and in a sustainable manner." 

He stressed that "the company succeeded in acquiring large market shares in the most important global crude oil markets, especially in the Asian market, including India and China, achieving the first ranks in terms of the dependence of those countries on our oil." 

He noted that "the most important international news sources, including ( S&P Global Platts ), indicated Iraq's success in acquiring good market shares in the most important crude oil consumption markets."