Iraq Oil Marketing Organization (SOMO) has signed memoranda of understanding with the Sultanate of Oman to facilitate the marketing of Iraqi oil. Company sources indicate that discussions are underway regarding the construction of a strategic pipeline to transport crude oil and products from Basra to the coast of the Sultanate of Oman.

Oman enjoys an important strategic location, with access to the Arabian Sea as well as the Arabian Gulf at its beginning before the Strait of Hormuz. Baghdad believes that these ports will facilitate the export of Iraqi oil to Iraq’s customers, most of whom are located in Southeast Asia. Asian customers will therefore be able to load Iraqi shipments from these locations instead of taking the long route.

It is worth noting that Iraq’s ports in Basra suffer from adverse weather conditions, which force Iraq to halt exports. This is in contrast to the open Omani ports, which provide both exports and customers with stability and compliance while reducing the possibility of shipment disruptions.

Implementing the idea of constructing a complete pipeline from Basra to Oman will increase Iraq’s export capacity, enabling Iraq to increase its share of OPEC oil production.

Another memorandum of understanding (MoU) was signed for commercial integration between the State Oil Marketing Organization (SOMO) and Oman Trading Company (OQ), a globally recognized Omani government-owned company. Contract details are currently being discussed between the two parties