SOMO reveals increase in revenues from oil exports

The State Oil Marketing Organization (SOMO) announced on Sunday that it had achieved an increase in its revenues after the voluntary cut was ended. The company’s general manager, Ali Nizar Al-Shatri, told the official news agency that “Iraq has achieved an increase in its oil exports after the voluntary cut was gradually ended by the OPEC and allied countries.”

He also explained that “Iraq has been able to increase its oil production, which has enabled it to raise the volume of its exports, based on a study of the oil market balance by OPEC and non-OPEC experts, who approved the possibility of making this increase.”

He added, “Oil exports are the main source of funding for the general budget, with current prices ranging between $65 and $68 per barrel, and an annual average of approximately $70,” adding, “With an increase in production estimated at approximately 200,000 barrels per day – equivalent to approximately 6,000,000 barrels per month – this will contribute to additional revenues estimated at hundreds of millions of dollars annually, as additional revenues that can be invested to support budget requirements.”

He pointed out that “the Oil Marketing Company, through commercial agreements and profit-sharing projects with foreign companies, is working to generate greater revenues from the sale of conventional oil through ports. This is achieved by reselling a portion of the barrels on global markets when commercial opportunities arise or when certain companies demand it, thus generating additional profits above the official price.”

He also explained that “the company has also activated a mechanism for selling spot shipments, which has enabled the sale of a number of barrels at price premiums commensurate with the volume of demand and opportunities available in the global oil market.”

Burathanews.com