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Sumo clarifies about the mechanism of selling black oil

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Sumo clarifies about the mechanism of selling black oil

Economy News - Baghdad

Today, Saturday, the Oil Marketing Company (SOMO) issued a clarification regarding the mechanism for selling the black oil product.

The company stated, "The decision of the Supreme Anti-Corruption Council taken in the middle of 2019 limited the process of selling the black oil product to the Oil Marketing Company, and

since 12/1/2019 the Oil Marketing Company has taken over the tasks of exporting oil products that are surplus to local needs (including the black oil product), as

The product is sold on the basis of the subtraction of the Al-Khattaf area in the Iraqi territorial waters and based on the activity authorized by the company by the Ministry of Oil to sell the product based on the price index of the product subtracted from the Arabian Gulf published in the HSFO FOB ARAB GULF Bulletin, in addition to a price premium that reflects the value of the product in the market Global".

He explained, "The premium is determined based on the competitive offers submitted by companies to obtain shipments of the product, and the price premium is 27,5 dollars / ton."

He added, "This sales mechanism, which has been approved since 1/12/2019, has achieved many advantages for the benefit of the country, including:

1- Discharge of the entire available quantities of the product for the purpose of export, which ranged the average of the quantities exported during the years 2020-2021 to 7 million tons annually.

2- Achieving the best financial returns through the competition of major international and Iraqi companies to purchase the product (for example, but not limited to, according to preliminary data, the revenues from selling the fuel oil product for the year 2021 amounted to 3 billion dollars).

3- Provisions of product transfers by land and sea, which contributes to reducing cases of fraud and smuggling, and through it, many cases of fraud and smuggling were revealed, which were referred to the higher security authorities as they affect the security and economy of the country.

4- This mechanism led to the realization of the operation of the country’s institutions in the field of land and maritime transport, as well as the private sector, which achieved great profits that contributed to supporting the budgets of these institutions and reducing their dependence on the country’s budget, and the Oil Marketing Company under the Law of Organization of the Ministry of Oil No. 101 of 1976 and the system

The company’s internal operations are responsible for marketing and exporting petroleum products that are surplus to the country’s domestic needs, according to transparent mechanisms to achieve the best financial return in support of the country’s general budget.

The company, through its official website, periodically publishes details of the quantities exported, the type of oil products, and the revenues generated, and for those wishing to obtain more information Go to the official website of the Oil Marketing Company.

He continued, "To ensure the export of the largest quantity available for export, the Ministry of Oil authorized the Oil Marketing Company to manage the land and sea transport activity through contracting with Iraqi tanker companies (public and private sectors) and according to transparent tenders governed by instructions for implementing government contracts."

According to the statement, the Oil Marketing Company appealed to the media and those interested to "be careful in publishing and circulating information related to the oil issue," welcoming all opinions and observations that are issued and published with prior knowledge, knowledge and understanding of the oil issue and not otherwise, because it will contribute to distorting facts and misleading opinion. general".

It affirmed, "it reserves its legal right against all parties that engage in cases of extortion and misrepresentation of the company's work and tasks."

Views 307   Date Added 09/04/2022

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