Mr. Adel Abdul-Mahdi, explains the mechanics of oil selling for global companies

March 10, 2016 16:40
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He said Oil Minister Adel Abdul Mahdi, on Thursday, the mechanics of the sale of oil to global companies, while stressing that Iraq is selling oil, similar to countries producing and exporting crude oil, pointed out that the sales contract is the style of the ministry.

Abdul-Mahdi said in a statement that "Iraq sells oil, similar to countries producing and exporting crude oil in the region, according to well-known and followed for decades rules."

He said Abdul-Mahdi, that "there are several mechanisms for sale, including direct sales and sales contracts that Iraq follows the second method as customers are serious and steadfast," denying the "recounted by some of the media that Iraq sells oil certain discounts or it sells its oil at less than market prices."

He said Abdul-Mahdi said "companies that deal with Iraq is one of the major sober global companies doing business in the oil markets, not generally accepted contracting with companies that do not possess or are related to refineries known to protect the markets of Iraq and to get away from the daily speculation."

, Adding that "contracts, which handles the Iraq extended for a year and up to 10 years to determine prices according to the market price of the consignment destined for him on the day of loading patched pricing Iraqi marketing company."

He said Abdul-Mahdi said "the suspicion that falls by some in terms of price, speaks about Iraq sells for less than global prices, or give discounts, is that he listens to tell is the advertised price in the releases is the price that must be the country received by the issuer, in so many mistakes the most important of the releases prices are the prices signal or the rates, not selling prices are final, in addition to the per your price zone, "noting that" Iraq supports three markets, namely the East and Europe and the Americas, and the oils prices vary from one quality to another, according to degrees of density API and Ahamodah and competitive factors. "

And Abdel Mahdi said "commission pricing, headed by the oil minister in the ministry's marketing company meet in the first ten days of each month, and considering the global market data, and all the indicators and factors present and future in accordance with the global program are working with all the big companies to examine the qualitative difference between the oil-signal and oil similar in on the market, as well as other aspects of competitiveness, "explaining that" the Commission to reach a final decision to the official rate declared (OSP) next month in the three markets, but the two types of oil Basra heavy and light. "

Iraq exports crude oil from the ports of Basra and Khor al-Amaya in the Persian Gulf and Turkish port of Ceyhan on the Mediterranean Sea and the truck by truck to Jordan, and the percentage of Iraqi exports from the Basra oil 90%, while the remaining issue of Kirkuk oil ratio.