In its continuous efforts to ensure stability in the energy sector, the Ministry of Oil recently announced that all national refineries are operating at their full production capacity. The ministry emphasizes its ongoing commitment to bolstering strategic fuel reserves through
long-term contracts, ensuring sustainable supplies. Regarding crude oil markets, total oil exports from southern and northern ports combined reached approximately 2.6 million barrels per day, amidst existing navigation challenges in the Strait of Hormuz. The ministry's spokesperson, Salim Al-Rakabi, clarified that
the bulk of exports is conducted via southern ports, which are affected by maritime navigation variables, while remaining quantities are transported through Turkish and Syrian outlets. Concerning domestic supplies, Al-Rakabi explained that contracts for improved gasoline and gas oil aim to
meet local needs and bridge any potential gap between production and consumption. He noted that the contracted daily quantities amount to 4 to 5 thousand cubic meters, depending on available imports. He also confirmed that these contracts cover needs for
several months ahead. In a related context to marketing mechanisms, Al-Rakabi stated that the State Oil Marketing Organization (SOMO) adopts a direct crude oil sales approach at ports, actively seeking the best offered prices while applying a fixed discount rate. Negotiations
are ongoing to consistently increase these prices. To enhance refining capabilities, the ministry confirmed an ambitious plan to boost the production capacity of national refineries, including the expansion of the Diwaniya and Maysan refineries, as part of its strategy for oil
sector development.
