Latest news with #StateOilMarketingOrganization
Shafaq News
25-05-2025
- Business
- Shafaq News
Iraq targets overseas refineries to boost oil revenue
Shafaq News/ Iraq is exploring investments in high-capacity overseas refineries to secure steady crude sales and maximize revenues, with a particular focus on fast-growing Asian markets, according to Nizar Al-Shatri, Director General of the State Oil Marketing Organization (SOMO). In an interview with Asharq, Al-Shatri said 75% of Iraq's oil exports are directed to Asia, citing the region's accelerating demand and expanding refining capacities, especially when compared to European and North American markets. China, India, South Korea, Indonesia, and Malaysia remain Iraq's top crude buyers. Al-Shatri explained that investing in foreign refineries would allow Iraq to secure fixed refining quotas, shielding exports from market volatility. 'We aim to work with reputable clients who operate high-capacity refineries in various markets to absorb price fluctuations without affecting export volumes,' he said. SOMO is currently pursuing long-term partnerships with major refiners across Asia, Europe, the Americas, and several African markets. These deals typically allow Iraq to sell crude at official prices, while benefiting from price differentials during market surges—taking 65% of the profit, with partners retaining 35%. In case of losses, the foreign partner bears the cost. Al-Shatri reaffirmed Iraq's commitment to OPEC+ quotas, stating that the country respects its production ceiling—currently set near 4M barrels per day (bpd), though Iraq's full production capacity is closer to 5.5M bpd. 'This discipline has helped stabilize the global oil market,' he said. Iraq has, however, expressed past concerns over OPEC+ restrictions, as it seeks to rebuild its economy and expand trade following decades of conflict and sanctions. Al-Shatri also clarified that condensates and associated gas are included in production figures for some fields to enhance crude quality, but stressed these should be reported separately as they are not technically crude oil. In 2024, Iraq exported approximately 1.2B barrels of oil, generating nearly $95B—accounting for over 90% of the country's total budget revenues. SOMO also utilizes the spot market to generate additional profits. Al-Shatri noted that in one recent year, this strategy brought in $80 million in bonus revenue. According to the International Monetary Fund, Iraq needs oil prices around $92 per barrel to balance its 2025 budget. Meanwhile, global oil benchmarks such as Brent crude are trading significantly lower, hovering near $65 per barrel—intensifying pressure on public finances. Founded in 1998, SOMO oversees Iraq's oil sales and has managed domestic fuel imports since 2003 to fill gaps in gasoline, diesel, kerosene, and liquefied gas supplies.
Shafaq News
02-05-2025
- Business
- Shafaq News
Q1 oil exports to Jordan surpass 1 million barrels
Shafaq News/ Iraqi crude oil exports to Jordan surpassed 1 million barrels in the first quarter of 2024, Iraq's State Oil Marketing Organization (SOMO) announced on Thursday. According to figures published on SOMO's official website, Iraq exported 1,039,591 barrels of crude to Jordan over January, February, and March, reflecting a 33.88% decrease from the 1,391,985 barrels shipped during the same quarter in 2023. Monthly breakdowns showed 309,980 barrels were exported in January, followed by a rise to 419,946 barrels in February, before dipping again in March to 309,765 barrels. The decline comes despite a bilateral agreement signed in August 2023 to increase Jordan's imports from 10,000 barrels per day to 15,000 barrels, raising total monthly volumes from 300,000 to 450,000 barrels — enough to cover roughly 10% of Jordan's crude oil needs, according to the agreement.
Iraqi News
26-03-2025
- Business
- Iraqi News
SOMO: Iraq has the fourth-largest proven oil reserves in the world
Baghdad - INA The State Oil Marketing Organization (SOMO) explained on Wednesday the importance of Iraqi oil and its vital role in global markets, stating that Iraq has the fourth-largest proven oil reserves in the world, at approximately 145 billion barrels. The company told the Iraqi News Agency (INA): "The promotion and sale of Iraqi crude oil is taking place in the three main markets (the Asian market, the European market, and the American market), in addition to the African market, through participation in international forums and conferences and holding meetings with major international companies directly or through the official website for online participation. It also invites and provides opportunities for major international companies, under announced terms and within established procedures, to participate in spot cargo auctions (Spot Cargo), which has attracted many international companies to become permanent customers for Iraqi crude oil. It emphasized that the marketing strategy adopted is to focus on markets that offer the highest returns and the best stability in demand, with flexibility in directing shipments according to global price changes to other markets to export the full available quantities of Iraqi crude oil."Regarding the advantages of Iraqi oil, SOMO emphasized that "global crude oils are classified and their quality determined based on their API gravity and sulfur content. Iraqi crude oil produced on this basis is classified as medium and heavy crude oil based on its API gravity. Both types have a high sulfur content, according to the sulfur content standard. It is considered a crude oil with specifications that are "globally required" and conform to the operational plans of refineries that wish to produce specific products based on their needs." SOMO explained that "among the advantages that help attract buyers are the large and growing demand for medium and heavy crude oils, the stability of production, and the availability of large, stable quantities that guarantee the supply of these refineries under long-term contracts. Its geographical location and low shipping costs make Iraqi oil a favorite in the Asian market, in addition to its fair, competitive price based on market fundamentals." It noted that "an increase in the API gravity means the potential for producing larger quantities of light, high-value products compared to heavier products. Meanwhile, the higher the sulfur content in crude oil, the less desirable it is for buyers because it requires higher refining costs." The company continued, "Iraq ranks fifth globally in oil production, with an output of approximately 4.27 million barrels per day, making it the second-largest producer in OPEC after Saudi Arabia. Iraq also has the fourth-largest proven oil reserves in the world, at approximately 145 billion barrels." It noted that "this ranking reflects Iraq's vital role in global oil markets, as it contributes significantly to meeting global energy demand. In terms of marketing, Iraqi crude oil is an important oil with a good market reputation, as it is used by many international refineries in refining operations and is in relatively high demand." SOMO added, "Iraqi crude oil is in global demand for refineries in several countries. Iraqi crude oil is exported exclusively to companies that own refineries. However, the majority of companies to which Iraqi crude oil is exported are Asian, most notably China and India, accounting for approximately 70% of the total, and approximately 30% for the other two markets, Europe and the United States combined." The Company explained, "The Oil Marketing Company adopts a clear strategy in accordance with the best marketing principles adopted globally, based on the principles of transparency and clarity in dealing with international companies specialized in the oil sector. It also relies on medium- and long-term contracts to ensure the marketing of crude oil at the best possible return, in the interest of the country, which relies on revenues generated by the Oil Marketing Company for more than 90% of its budget funding." SOMO also stated, "The Oil Marketing Company also undertakes the export of products such as naphtha, fuel oil, jet fuel, sulfur, and any other surplus products beyond local needs. Imports vary depending on the quantities and types available for export. The production costs borne by companies investing in Iraqi oil fields can indirectly affect global Iraqi oil prices, as the price of Iraqi crude oil depends on market factors such as supply and demand. Production costs, however, impact Iraq's profit margins and oil investments. However, global prices are determined more by supply and demand factors, competition, and OPEC+ policies in some cases, among others. If costs rise significantly and impact Iraq's production capacity, this could lead to higher oil prices due to a shortage in supply."
Iraq Business
04-03-2025
- Business
- Iraq Business
Iraq's Oil Marketing Organization announces new Director General
By John Lee. Iraq's State Oil Marketing Organization (SOMO) has announced Ali Nizar Fayeq al-Shatari as its next Director General. He succeeds Khudhyer Abbas Abed, who has held the role for less than a year. Originally qualified as a chemical engineer from the University of Baghdad, Al-Shatari completed an MSc in Energy Economics and Policy at the University of Surrey in UK. He has held a variety of positions within SOMO. Click here to view al-Shatari's resume (Arabic). (Source: SOMO) Tags: featured, State Oil Marketing Organization (SOMO), United Kingdom
Rudaw Net
28-02-2025
- Business
- Rudaw Net
Kurdistan's oil exports to resume 'in coming hours': oil ministry
Also in Iraq Oil producers welcome Rubio's efforts to restart Kurdish exports Iraq welcomes Ocalan's call for PKK's dissolution Iraq among top 15 countries most affected by climate change: PM advisor Iraq's future water availability at risk: Panelists A+ A- ERBIL, Kurdistan Region - Iraq's oil minister on Friday said the resumption of Kurdistan Region's oil exports will be announced 'in the coming hours,' nearly two years after they were suspended. 'Iraq will announce in the coming hours the commencement of the Region's oil export operations' through the State Oil Marketing Organization (SOMO) via Turkey's Ceyhan port, Oil Minister Hayyan Abdul Ghani said in a statement from his ministry. Exports will begin at a rate of 185,000 barrels per day and gradually increase to the level set in the federal budget, according to the ministry statement. This is a developing story…
