Tag Archive | "SOMO"

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Iraq to Sell Heavy Basra Crude from May


By John Lee.

Reuters cites sources as saying that Basra Heavy crude, with an API gravity of 24 degrees, will be sold from May.

It will be allocated to companies with technical service contracts, such as Lukoil , Petronas, CNPC, CNOOC, BP, ExxonMobil and Shell.

The State Oil Marketing Organization (SOMO) had previously abandoned plans to split its oil shipments into heavy and light grades due to logistical problems.

(Source: Reuters)

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Iraq Narrows Oil Discount to Asia


By John Lee.

Iraq’s State Oil Marketing Organisation (SOMO) has narrowed the discount for April crude deliveries to Asian buyers by the most since November 2011, according to Bloomberg.

Asian shipmentas are priced relative to the Dubai-Oman crude benchmark, published by Platts, the energy-information division of McGraw-Hill.

Basrah Light to Asia will sell at a discount of $2.80 to the benchmark, up from a discount of $4.10 last month.

(Source: Bloomberg)

(Oil image via Shutterstock)

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Record Oil Production set to Increase


By John Lee.

Iraq produced a record of around 4 million barrels per day (bpd) of crude oil in December, Oil Minister Adel Abdel Mehdi (pictured) told a press conference on Sunday.

This beat the previous record for Iraqi production of 3.56 million bpd in 1979, according to an official from the State Oil Marketing Organization (SOMO).

The Minister went on to reveal plans to export 375,000 bpd for the first three months of 2015 from Kirkuk and the Kurdistan region, increasing to 600,000 bpd from April.

(Source: Reuters)

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Iraq Plans Record Oil Exports


By John Lee.

Reuters reports that the State Oil Marketing Organization (SOMO) is planning to export 3.3 million bpd of Basra crude from its southern ports in February.

December’s total figure hit 2.94 million bpd, the highest since 1980, of which a record 2.76 million bpd of oil was exported from the country’s southern terminals.

(Source: Reuters)

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Iraq Reviews Oil Prices


By John Lee.

Iraq’s State Oil Marketing Organisation (SOMO) has adjusted its official selling prices for its Basra Light and Kirkuk crude grades for February.

In common with some other countries, Iraq’s oil is priced relative to regional benchmark prices:

  • For shipments to US, contracts are priced are relative to the Argus Sour Crude Index (ASCI);
  • Shipments to Europe are priced relative to the North Sea Spot BFOE (Brent benchmark); and
  • Asian shipmentas are priced relative to the Dubai-Oman crude benchmark, published by Platts, the energy-information division of McGraw-Hill.

The new prices to Europe are as follows:

  • Basra Light to Europe will sell at a discount of $5.95 a barrel to Dated Brent, compared to a discount of $4.35 previously.
  • Kirkuk Crude to Europe will sell at a discount of $4.80 a barrel to Dated Brent, compared to a discount of $2.90 previously.

And to the US:

  • Basrah Light will sell at a discount of $1.05 to the U.S. benchmark, down 40 cents the previous month.
  • Kirkuk will sell at a premium of $1.75, unchanged from last month.

To Asia:

  • Basrah Light to Asia will sell at a discount of $3.70 to the benchmark, up from a discount of $4.00 last month.

(Source: Bloomberg)

(Oil image via Shutterstock)

Posted in Oil & GasComments (9)

Dragon Oil Make Second Basra Discovery


By John Lee.

Dublin registered Dragon Oil have announced a second oil discovery at the Block 9 exploration well, ‘Faihaa-1′.

This is good news for the consortium who have a 30% stake in the well along with the operator, Kuwait Energy who have a 70% stake in the block, located in the northern part of Basra province, southern Iraq.

The firm’s first discovery at Block 9 occurred in September last year, 2700 metres into the Mishrif formation. The second target was the Yamama formation, at 4000 metres. Dragon Oil signed their oil services contract for the site in January 2013.

(Source: Dragonoil.com)

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Hawrami Calls for Private Oil Exports


By Padraig O’Hannelly.

Dr Ashti Hawrami (pictured), the KRG’s Minister for Natural Resources, has clarified the two stage process involved in the recent agreement between Erbil and Baghdad regarding oil exports.

Speaking at CWC’s Kurdistan-Iraq Oil & Gas Conference recently in London, Dr Hawrami said that the first stage of the resolution covers the issues recently agreed, including the 2015 budget, the export of 250,000 bpd from KRG-controlled oilfields, and the facilitation of 300,000 bpd exports from the Kirkuk fields.

Still to be agreed as part of a second stage of negotiations over the next six months are issues including the KRG’s right to export oil independently, and to receive payments directly.

But he added that following the KRG’s recent experience with regard to the receipt of payments from Baghdad, which he described as “a wake-up call“, there will be no flexibility in the KRG’s position on these two points.

Dr Hawrami went on to express his confidence that a resolution will be found, and said that his preferred option would be for the oil companies to market their own oil, north and south, independently of either the KRG or the State Oil Marketing Organization (SOMO):

“The oil companies can do a better job in exploration, in production, and in marketing, and in everything else, so it is not our policy to [replicate the work of] SOMO.”

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December Crude Exports may Hit Record


By John Lee.

Reuters reports that Iraq’s oil exports may hit a record high in December.

Shipping data for the first 23 days of December suggest that exports from Iraq’s southern terminals have averaged at least 2.6 million barrels per day.

Additionally, the State Oil Marketing Organization (SOMO) has been exporting about 180,000 bpd of Kirkuk crude through the Turkish port of Ceyhan, following the deal reached between Baghdad and Erbil.

Taken together, this comes close to the 2.8 million bpd record high posted in February.

(Source: Reuters)

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