SULAIMANI (ESTA) — Iraqi state-owned marketer SOMO has finalized a term contract to supply 750,000 tons of straight-run fuel oil (SRFO) per month from April to September, Reuters cited four fuel oil trade sources as saying.
Chevron Corp, Reliance Industries Ltd and an unidentified Iraqi oil trader were awarded the six-month SRFO supply contract with 50% of the monthly volume going to Chevron and 25% of the volume going to Reliance and the oil trader each, the sources told Reuters.
The supply contract was awarded at a premium of about $25 per ton to Middle East quotes for high-sulphur fuel with a viscosity of 180-centistoke, two of the sources said.
On Tuesday, the Iraqi cabinet approved a deal to award U.S. company Schlumberger Ltd a $480 million deal to drill 96 oil wells in the south.
Iraq, OPEC’s second-largest producer, relies on oil exports for nearly all its state revenue.
