SOMO imposes price premiums on Basra crude shipments

The State Organization for Marketing of Oil (SOMO) has introduced new financial terms for buyers of Basra Medium crude oil shipments intended for loading outside the Strait of Hormuz during September 2026.

According to official tender documents, SOMO is requiring price premiums to account for logistical difficulties and restrictions on tanker movements through the Strait. For shipments loaded during the first ten days of September, the required premium is at least 20 cents per barrel. This amount is set to increase significantly to at least 3 dollars per barrel for shipments loaded between September 11 and September 30.

SOMO utilizes a ‘port-out’ mechanism for certain sales, which exempts the Iraqi Ministry of Oil from responsibility regarding tanker routes or the acquisition of necessary transit approvals once vessels depart Iraqi ports. This comes amid ongoing regional complexities regarding maritime navigation in the sensitive Strait of Hormuz.