SOMO Proceeding Well in Oil Deals in Iraq

Listen to this article

Jakarta Globe has reported on the 3^rd April 2013 that Iraq is penetrating in Asian countries by signing big deals with China, India and Indonesia. According to the Reuters, Indonesia has agreed and signed a treaty. As per the agreement, Indonesia will purchase total Basra light crude in the second half of the current year. Iraq`s State Oil Marketing Organization, SOMO has done a deal with Indonesia.

Iraq is penetrating in the Asian markets with cheaper prices as compared to the rival Saudi Arabia. By grabbing a slice from the Asian markets, Iraq is announcing its optimistic approach towards the future forecasts.

The state-run energy firm Petral of Pertamina will buy one million barrels of super, high and medium level crude each month between Jun and Dec this year. A number of oil deals have been signed with neighboring and Asian countries in the last few months. International business community is welcoming Iraq for oil purchases as it is the second highest oil producer in the world with million barrels per day.

Iraqi Dinar and Iraq economy is totally depending on oil exports because 93% of the generated revenue comes from oil sales. So the majority of the development projects can be run successfully if the oil sales are on track as per the required pace.

The Ministry of Oil and Gas has set a production target of 12 million barrels per day for the year of 2017. New areas are being explored in Basra fields and surroundings with the collaboration of international oil companies.