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SOMO Says it is Sole Entity Allowed to Export Iraqi Crude Oil

Photo courtesy of SOMO website
Photo courtesy of SOMO website
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SOMO Says it is Sole Entity Allowed to Export Iraqi Crude Oil

Photo courtesy of SOMO website
Photo courtesy of SOMO website

Oil Marketing Company (SOMO) has announced that it is the sole entity that is legally authorized to export Iraqi crude oil.

“SOMO wishes to clarify to public opinion and those interested in the petroleum matters that SOMO is the sole and exclusive entity that is legally authorized to export Iraqi crude oil and its petroleum products,” it said in a statement on Saturday.

The company affirmed that Iraqi fuel oil product is being exported from the floating tanks exclusively (POLA & EVGENIA I) located at the Iraqi Territorial waters - anchorage area through the southern port.

“However, the announcement of the sale of fuel oil shipments by other parties as Iraqi-origin shipments is illegal, and these parties have to take full legal responsibility to be punished under Iraqi law, as these shipments are smuggled,” said the statement.

SOMO denied announcing the sale of a fuel oil shipment through the northern ports (Turkish territory), pledging to take all legal measures against any party involved in dealing with the shipments.

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OPEC Receives Compensation Plans from Iraq, Russia and Kazakhstan

A model of oil rigs in front of the OPEC logo (Reuters)
A model of oil rigs in front of the OPEC logo (Reuters)
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OPEC Receives Compensation Plans from Iraq, Russia and Kazakhstan

A model of oil rigs in front of the OPEC logo (Reuters)
A model of oil rigs in front of the OPEC logo (Reuters)

The Organization of the Petroleum Exporting Countries (OPEC) Secretariat said Wednesday that it received compensation plans from Iraq, Kazakhstan and Russia for their overproduced oil volumes in the first half of 2024.
OPEC said in a statement that the combined overproduction from the three countries totaled 2.28 million barrels per day (bpd) during the period.
The Organization added that the 37th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on June 2, reiterated the critical importance of adhering to full conformity and the compensation mechanism.
In light of the above, the OPEC Secretariat said it received compensation plans from Iraq, Kazakhstan, and Russia for their overproduced volumes for the first six months of 2024 (January through June), which totaled about 1,184 tb/d for Iraq, 620 tb/d for Kazakhstan, and 480 tb/d for the Russian Federation, according to assessments made by the independent sources approved in the Declaration of Cooperation (DoC).
As a result, the three countries will trim output by varying amounts on a monthly basis, according to a table issued by OPEC, to compensate through September 2025.
Iraq and Kazakhstan will begin in July with 70,000 b/d and 18,000 b/d, respectively, while Russian cuts will begin in October.
The Platts OPEC+ Survey found Iraq produced 4.22 million b/d in June, against its quota of 4 million b/d. Russia pumped 9.10 million b/d (quota 8.978 million b/d) and Kazakhstan produced 1.54 million b/d (quota 1.468 million b/d) in the month.
Meanwhile, Russia would offset 40,000 bpd of oil overproduction in October-November 2024, while 440,000 bpd of excess output will be offset in March-September 2025, OPEC said.
Russian crude oil production in June exceeded quotas set by the OPEC+ group but the energy ministry pledged on Wednesday to stick to the required output level in July.
It said the production level was assessed by independent sources certified by the OPEC+ deal. These include international consultancies.
The ministry said Russia had sent its schedule on overproduction compensation to the OPEC secretariat, and that its oil output had fallen each month starting from April.
Deputy Prime Minister Alexander Novak said on Tuesday that Russia is producing close to its crude production cut target under the OPEC+ agreement.
Last month, Russia, in a rare admission of oil overproduction, said that it exceeded its OPEC+ production quota in April for “technical reasons.”
Meanwhile, Iraq has blamed high production estimates on its Kurdistan region, over which the government in Baghdad has little control.
“Iraq accounts for the largest share of the compensatory cuts. But Baghdad does not have oversight over production in the Kurdish Regional Government -- and has limited visibility over how much is even produced there,” said Jim Burkhard, Commodity Insights' vice president, oil markets, energy and mobility. “Unless KRG output is cut, then Iraqi federal production will have to be cut further. This would be a real challenge.”