February 23, 2021 | oil and gas

After The Rise In Oil Prices, Iraq Announces Freezing Advance Payment Agreement For Oil


Baghdad (NINA) - Minister of Oil, Ihsan Abdul-Jabbar, announced today, Monday, the freezing of the advance payment agreement for crude oil, after oil prices rose more than they were when the decision was taken, which aimed to boost revenues.

Abdul-Jabbar said in a press statement, 'The ministry decided to freeze the advance payment agreement of Iraqi crude sold at the beginning of the current year, due to the economic stability resulting from high oil prices.'

He explained that 'there was a fear that oil prices would not rise again above forty dollars when Iraq announced for the first time in its history the advance payment agreement decision.'

Iraq, according to an earlier statement by the Oil Marketing Company SOMO, was seeking a five-year advance payment agreement, beginning in January 2021 and ending in December 2025, for shipments of Basra crude.

The crude oil advance payment agreement stipulated that the winner of the bid would pay SOMO about $ 2.5 billion for 48 million barrels of crude between July 1, 2021 and June 30, 2022.

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