OPEC's No. 2 Producer Wants to Know How Buyers Use Its Oil

[rainman + 263]

Major OPEC producer Iraq would like to know how and where its oil will be used, as demand rises for Middle East cargoes to replace shipments from fellow group member Iran. Iraq’s state-run Oil Marketing Co., known as SOMO, is asking buyers of its Basrah crude to specify the final destination country for its cargoes, people with knowledge of matter said, asking not to be identified because the information is confidential. That aims to curb cargo resales, a practice under which companies reroute the oil to other firms who may offer a better price.The demand for final destination details coincides with growing fears of a crunch in the Middle Eastern crude market, as impending U.S. sanctions on Iran squeeze the Persian Gulf state’s exports. With uncertainty rising over whether other regional producers will be able to fill a potential supply gap, prices are climbing as buyers rush to secure alternative shipments.  According to Bloomberg, while Saudi Arabia and Iran impose country-specific destination restrictions on their supply and don’t allow buyers to resell cargoes bought under long-term contracts, Iraq’s rules are a bit looser. SOMO mostly sells to technical service contract holders that have invested in the nation’s exploration and development projects, and other lifters who have refining assets. Its end-use stipulations are limited to geographic regions, rather than specific countries.

[franco + 96]

Of course. This corresponds with upcoming US sanctions on Iran.

[Pavel + 384]

It is the first steps of taking control of Oil and it is the road to profitability and to a better future for the people of Iraq. Big aspiration of No.2. - Iraq plans to reach 4 m. oil barrels for 2019 exports.

[50 shades of black + 254]

Does Iraq have control of its wealth/oil fields? Answer is here:

 

 

[pinto + 293]

7 minutes ago, 50 shades of black said:

Does Iraq have control of its wealth/oil fields? Answer is here:

 

 

With any good business deal both sides benefit.... 

[ThunderBlade + 231]

Of course, corporations want to exploit the oil reserves of this region. In same time, Iran controls the majority of politicians and some of the Iraqi natural resources. Oil trafficking and money laundry are going with support of fake Iraqi banks. Situation is far from any kind of State control, and now State wants to control flows of money and oil. Impossible.