Somo issues first gasoil export tender: Correction

Corrects sulphur content in paragraph 2

Iraq's state-owned Somo issued its first gasoil export tender, likely because additional volumes are coming from its new 140,000 b/d Karbala refinery.

Somo is offering 82,000t (612,000 bl) of gasoil with a maximum sulphur content of 0.9pc over a three-month period from the date of signing the deal, with an option to extend the agreement upon Somo's approval. Somo indicates gasoil is to load from North Company refineries. The bids are to be submitted by 26 May.

This is the very first gasoil export tender issued by Somo as Iraq has historically been heavily dependent on gasoil imports to satisfy its domestic demand. Market participants suggest Iraq can now afford to export gasoil because it has ramped up its new 140,000 b/d Karbala refinery south of Baghdad.

Karbala refinery began commercial operations in April last year and primarily supplies oil products to domestic market, but in doing so it creates gasoil surplus in the northern part of the country.

Iraq has also recently reopened its 150,000 b/d North refinery — part of Iraq's largest downstream facility the 290,000 b/d Baiji complex. The refinery was running at around 70,000 b/d in March, according to market sources.

Additional production potentially caused Iraq to stop importing gasoil this year. Iraq's gasoil imports dropped to zero in February and March, show the latest data from Joint Organisations Data Initiative (Jodi). This is compared with around 24,500 b/d gasoil imports in 2023.

By Ieva Paldaviciute