Iraq approaches French entities on supplying more crude Europe

Shafaq News / Iraq's state oil marketer SOMO has approached French traders about the possibility of supplying Europe with crude, its director general said May 31, as the EU seeks to implement a ban on Russian seaborne imports.

SOMO still aims to maintain its key supply contracts with Indian and Chinese state customers, who have signed long-term contracts, and Iraq cannot afford to lose those clients, Alaa al-Yasiri told the Iraqi parliament's oil, gas and natural resources committee, according to a statement from the legislative body.

Iraq is targeting refineries globally to process its crude, Yasiri said, which would provide OPEC's second biggest producer with opportunity to benefit from Europe's search for alternative supplies from Russia, the largest source of the bloc's oil.

Europe received 15% of Iraq's crude exports in 2021, or 439,000 b/d, according to commodity intelligence company Kpler.

More recent volumes were slightly lower, with 390,000 b/d in May, or 12% of Iraqi exports.

Asia took the lion's share of Iraqi crude exports in 2021 or 76% of the total, Kpler data showed.

(S&P)