At a Glance

• Iraqi lawmakers and SOMO address overland routes amid regional tensions.
• SOMO coordinates ongoing initiatives to secure nationwide gasoline supplies.
• August exports hit 60 million barrels, up from 24 million in June.

The Iraqi Parliamentary Finance Committee hosted a meeting with the Director General of SOMO to secure domestic fuel needs and establish alternative crude oil export routes, as nationwide oil exports hit a record high this month.

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Key Statement and Focus Area

• The Finance Committee discussed oil export mechanisms through available outlets in light of the current conditions in the region. 
• Iraq's oil exports experienced a major surge in August, reaching 60 million barrels, compared to just 24 million barrels in June.

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According to a parliamentary statement, the Parliamentary Finance Committee, chaired by MP Uday Awad Kadhim and attended by several of its members, hosted SOMO Director Ali Nizar on Monday. 

The meeting focused on oil export mechanisms amid regional tensions and the procedures adopted by the company to find alternative outlets and routes for export to ensure the continuity of oil exports.

The SOMO director detailed Iraqi oil export volumes and global market prices for July and August across various terminals. 

He also reviewed critical obstacles facing the export sector and outlined ongoing efforts to secure nationwide gasoline and gas oil supplies.

Lawmaker Rebwar Karim, a member of the Finance Committee, told Channel8 that the SOMO director attributed the previous disruption of the Kurdistan Region's oil exports to the war between the U.S. and Iran. 

Prior to those tensions, the Kurdistan Region exported 220,000 to 230,000 barrels of oil daily, but the process has now resumed in phases.

Channel8 has learned that the Kurdistan Region currently delivers 55,000 barrels of oil daily to SOMO, with the volume steadily increasing. Meanwhile, Basra and Kirkuk oil exports stood at 24 million barrels in June and reached 49 million barrels in July.

FYI

The Iraqi Council of Ministers has temporarily authorized private companies to export crude oil alongside SOMO at up to a 30% discount starting September 1. 

This emergency policy addresses the closure of the Strait of Hormuz, forcing reliance on overland routes through Syria, Turkey, and Jordan while enabling oil exports to rebound towards a projected 60 million barrels for August. 

Meanwhile, the country's recent oil infrastructure agreements focus heavily on diversifying export routes to bypass the volatile Hormuz Strait, expanding field production, and securing security guarantees for international operators.

The KRG and the federal government have established a phased agreement to resume oil exports from the Kurdistan Region under the oversight of SOMO, while international oil companies officially initiated a phased restart of their operations in the region in June.

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