Iraq – China: agreement on oil with advance payment

The company that manages Iraq’s oil exports, The State Organization for Marketing of Oil (SOMO), has selected a Chinese company for a multi-billion-dollar deal on oil supplies. The agreement is important because it introduces a news in Iraq, since it talks about a five-year agreement for the supply of 130,000 barrels of crude oil per day, against advance payment of a year of supplies. The amount would be of over $2 billion. The deal also provides for the possibility of choosing the time and the destination in which to ship the crude oil during a one-year period of time. Possibility of choosing, for one year, the time and the destination in which to ship the crude oil.