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Showing results for tags 'shipments of basra crude.'.
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'Pre payment' Reuters: Iraq is seeking to conclude the first oil deal of its kind extending for 5 years 2020.11.23 - 23:04 Baghdad - People The Ministry of Oil revealed, on Monday, that Iraq is seeking to conclude its first-ever advance payment of crude oil to support its finances, as it seeks to counter the decline in oil prices and demand due to the Coronavirus pandemic. According to a letter sent by the state oil marketing company (SOMO) to its customers published by Reuters (23 November 2020), “The country is seeking to prepay for five years, starting from January 2021 until December 2025, to be returned with shipments of Basra crude. ". An official in the Iraqi Oil Ministry confirmed the contents of the document. The oil marketing company said in the letter issued on November 23 that it "will accept offers from potential parties until 16:00 Baghdad time on November 27th." The official said, "The prepayment of oil shipments is part of an urgent plan to finance the state budget and bypass the financial crisis. We have obligations to OPEC to reduce production. Foreign oil companies' dues must be paid and also to support our economy, and this is the reason why we need to request prepaid financial payments. To purchase some of our oil shipments. " OPEC and allies including Russia, within the framework of what is known as "OPEC +", announced record cuts in oil production in the first half of the year, with the collapse of demand for crude when the world became almost stalled due to the general isolation measures aimed at combating the Covid pandemic. -19. OPEC + was due to raise production by 2 million barrels per day in January, but the group is currently considering delaying the increase or deepening production cuts.
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