Baghdad (IraqiNews.com) – Iraq’s State Oil Marketing Organization (SOMO) has begun advanced discussions to acquire a storage facility in Singapore as part of Baghdad’s efforts to enhance its position in the Asian market, which is the fastest-growing market for crude oil refining and consumption.
SOMO indicated that it is attempting to attract significant multinational corporations, building on decades of partnerships with key American companies, most notably ExxonMobil, which has refineries and storage tanks in different markets, including Asia, Europe, and the United States.
Iraq is exploring strategic solutions to increase its export capability. This entails not just selling crude oil but also forming alliances with multinational corporations.
These partnerships would allow Iraq to gain advantages in storage and refining, as well as participate in the profits generated from petroleum products.
SOMO’s director, Ali Nizar al-Shatri, told the Iraqi News Agency (INA) that discussions with ExxonMobil to store Iraqi oil are progressing.
The discussions could lead to a deal that would enable Iraq to secure a storage facility in Singapore, as well as other ExxonMobil-owned locations in Asia, according to al-Shatri.
The Iraqi official indicated that the discussions go beyond storage and include refining capacity, as well as a prospective profit-sharing partnership with ExxonMobil in crude oil and refined product trading, providing extra financial returns for Iraq.
Iraq’s entry into the storage and refining industry through big firms is a strategic move that will enable a shift toward integrated partnerships rather than merely selling crude oil.
