What SOMO does

SOMO (شركة تسويق النفط / State Oil Marketing Organization) is Iraq's state-owned crude oil and petroleum products marketing entity, operating under the Iraqi Ministry of Oil. It holds the exclusive government mandate to market, price, and export all Iraqi crude oil production — including Basrah Medium and Basrah Heavy grades from southern Iraq, Kirkuk crude from northern Iraq, and Kurdistan-region crude — as well as petroleum products (fuel oil, naphtha, sulfur) and refined product imports. The organization sets monthly Official Selling Prices (OSPs) benchmarked against Oman/Dubai averages, with Asia-Pacific and European destination differentials; notable pricing moves include Hormuz-risk discounts of $26-$33.40/bbl on Basrah Medium during the May 2026 disruption and Asian discounts of $6.50/bbl in August 2026.

Operations are supported by a digital infrastructure for vessel tracking, export documentation, and monthly market reports distributed via the somooil.gov.iq portal (Excel downloads for crude exports, product exports, and import summaries). SOMO's technology footprint is conventional — there is no API, SDK, or AI-driven pricing or forecasting system — and the core competency is institutional rather than technical: aggregating the entirety of Iraqi state crude into a single marketing channel and executing term contracts, spot tenders, and direct negotiations with global refiners and trading houses. The organization is led by Director General Ali Nazar Al-Shatari (علي نزار الشطري), who also serves as Iraq's OPEC Governor.

SOMO's revenue model is effectively a state-treasury marketing operation: it sets OSPs, allocates cargoes to international buyers, and books export receipts to the Iraqi government. The customer base is concentrated in Asia — China is the largest importer, followed by India, South Korea, Japan, and Taiwan — with European buyers as a secondary market. Distribution runs through three corridors: southern Gulf terminals (Basra, Khor Al-Zubair, Umm Qasr) handling the bulk of volumes via ship-to-ship transfers; the Kirkuk-Ceyhan pipeline to Turkey's Ceyhan port (170,000 bpd current vs 750,000 bpd agreement); and the recently opened Syrian Baniyas route targeting 50,000 bpd from July 2026. Headcount is stated at 1-10, consistent with a lean state entity rather than a commercial enterprise. Reported export scale reached 3.38 million bpd in August 2025 and $6.96 billion in September 2025, though the 2026 Hormuz crisis caused production to drop from 4.3 million bpd to approximately 1.3 million bpd before partial recovery.

Name

SOMO

Legal name

شركة تسويق النفط (Oil Marketing Company)

Website

https://somooil.gov.iq

Company type

Private

Operating status

Operating

Headcount range

1–10 employees

Short description

SOMO is Iraq's state-owned crude oil marketing organization under the Ministry of Oil, mandated to export Iraqi crude and petroleum products. It serves international refiners and traders across Asia and Europe via three corridors: southern Gulf terminals, the Kirkuk-Ceyhan pipeline, and Syrian ports.

Ownership category

akta.pro rank

Product category

Crude Oil Marketing

NAICS

Petroleum and Petroleum Products Merchant Wholesalers (4247), Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals) (424720)

SIC

Wholesale-Petroleum & Petroleum Products (No Bulk Stations) (5172)

akta.pro primary industry

Branded Fuels Wholesaling & Jobber Distribution (EUALAIAB)

akta.pro secondary industries

Crude Oil & Petroleum Products Tanker Transport (TLADALAA), Bunker Procurement, Contracting & Risk Management (Hedging, Claims) (TLAHAKAE)

Keywords

• Crude oil marketing
• Petroleum products trading
• Official selling prices
• Oil export logistics
• State oil marketing

Headquarters

HQ city

Baghdad

HQ country

Iraq

HQ region

Middle East

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Marketing or Sales, Technology or R&D, Others

Revenue model

1. Crude Oil Export Marketing: SOMO markets and sells all Iraqi crude oil production from southern terminals (Basra), northern exports via Kirkuk-Ceyhan pipeline to Turkey, and western exports through Syria. The organization sets monthly Official Selling Prices (OSPs) for Basrah Medium and Basrah Heavy crudes, with revenues accruing to the Iraqi state treasury.
2. Petroleum Products Export/Import: SOMO manages the export of petroleum products (fuel oil, naphtha) and imports of refined products as needed. The organization coordinates ship-to-ship transfers at Iraqi territorial waters and oversees maritime transport tenders for product movements.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

SOMO is Iraq's state-owned, sole-mandated marketing organization for all Iraqi crude oil exports and petroleum products. It sets monthly Official Selling Prices (OSPs) for Basrah Medium and Basrah Heavy crudes, manages term contracts, spot tenders, and direct negotiations with international refiners and trading houses, and coordinates export logistics through southern Gulf terminals, the Kirkuk-Ceyhan pipeline to Turkey, and Syrian ports.

Product overview

SOMO (State Oil Marketing Organization) is Iraq's state-owned oil marketing company under the Ministry of Oil. It operates as a single unified offering centered on the marketing and export of Iraqi crude oil and petroleum products. The portfolio consists of: (1) Crude Oil Export Data Services providing downloadable export volumes and vessel tracking; (2) Petroleum Products Export and Import Data Services covering fuel oil, naphtha, and derivatives; (3) Monthly Global Oil Market Reports offering market analysis and pricing indicators; (4) Tanker Tracking and Monthly Export Reports with daily vessel position data; (5) Sulfur Marketing and Export as a new product line; and (6) a Pre-Qualification Registration process for companies seeking to participate in import/export of oil products. All data products are distributed via downloadable Excel files and published reports on the SOMO website.

Differentiator

Problem solved

Functional benefit

Products and services

• Basrah Medium Crude Oil Export Marketing Marketing and sale of Basrah Medium crude oil to international refineries and trading houses via term contracts, spot tenders, and direct negotiations, priced monthly against the Oman/Dubai benchmark with geographic differentiation (Asia vs Europe).
• Basrah Heavy Crude Oil Export Marketing Marketing and sale of Basrah Heavy crude oil to international buyers, priced monthly as a differential to the Oman/Dubai benchmark and subject to risk-based adjustments during shipping route disruptions.
• Petroleum Products Export and Import Management Management of petroleum product exports (fuel oil, naphtha) and imports of refined products as needed, including maritime transport tenders and ship-to-ship transfer coordination at Iraqi territorial waters.
• Sulfur Marketing and Export Marketing and export of Iraqi sulfur to global markets, contracted to qualified companies that complete financial and technical requirements, achieving prices around $755 per ton.
• Pre-Qualification Registration for Import/Export Partners Formal pre-qualification process administered by SOMO for companies seeking to participate in the import or export of Iraqi oil products, with registration forms available in Arabic and English.
• Crude Oil Export Data Services Downloadable monthly and annual crude oil export data published via Excel files, covering export volumes, vessel names, loading terminals, and destinations.
• Monthly Global Oil Market Reports and Tanker Tracking Monthly reports on global oil market conditions, price trends, and supply-demand indicators, plus daily tanker position tracking and monthly export reports with vessel names.

Quantifiable outcome

• 3.38 million bpd exports sustained in August 2025
• +1 more outcomes

Named customers5 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Seven partnerships are on record, tiered core and minor.

• BOTAS (Turkish State Energy Company)coreStrategic or Co-development Partner · 1 August 2026SOMO and BOTAS signed a one-year extension of the Iraq-Turkey Pipeline agreement covering 750,000 bpd capacity. The agreement, replacing an expired 1973 framework, ensures continued crude oil exports via the Kirkuk-Ceyhan pipeline to Turkey's Ceyhan port. Negotiations continue for a longer-term comprehensive agreement covering oil, electricity, water resources, and broader cooperation.
• International Energy Forum (IEF)minorStrategic or Co-development Partner · 2 July 2026SOMO Director General participated in IEF meetings in Bucharest (June 2026), including the Industry Advisory Council. Discussions focused on market data transparency, energy security, and stabilizing global oil markets.
• TotalEnergiescoreChannel Partner/ Reseller/ Distributor · 30 June 2026TotalEnergies actively offers Iraqi Basrah Medium and Basrah Heavy crude for prompt delivery to buyers in China, South Korea, and Taiwan, handling loading and transportation through the Strait of Hormuz. The company provides pickup and delivery services directly to customers, in contrast to SOMO's model requiring buyers to arrange their own shipping.
• PetroChinacoreStrategic or Co-development Partner · 30 November 2025SOMO conducted high-level delegation visit to Beijing to strengthen strategic partnership with PetroChina. Discussions focused on payment mechanisms for oil field development dues, lifting volumes, and marketing arrangements. Both parties emphasized mutual interests and the importance of adhering to SOMO's Official Selling Prices.
• OQ (Oman)minorStrategic or Co-development Partner · 6 September 2025SOMO and OQ (Oman's national oil company) signed two strategic MoUs during Iraqi Prime Minister's visit to Oman. The agreements aim to strengthen bilateral cooperation in the energy sector.
• Nayara Energy (India)minorChannel Partner/ Reseller/ Distributor · 1 September 2025Prior to EU sanctions in July 2025, Nayara Energy sourced approximately 2 million barrels monthly of Iraqi crude and 1 million barrels monthly of Saudi crude from SOMO and Saudi Aramco. Sanctions suspended the commercial relationship.
• OPECcoreStrategic or Co-development Partner · 9 June 2025SOMO Director General serves as Iraq's OPEC Governor and participates in OPEC meetings. SOMO coordinates with other OPEC member countries on production policies, market stability measures, and OPEC+ cooperation frameworks.

Scale indicators7 records

Recent moves6 records

Expansion highlights5 records

Emerging players

• Vitol: World's largest independent oil trading house. Comparable in the wholesale intermediation function between producing countries and refiners, though operating without the state-mandated exclusive mandate that distinguishes SOMO.
• Trafigura: Major private global commodity trader active in crude oil marketing and distribution. Offers an alternative, non-state intermediation model that competes with SOMO for refiner relationships in Asia and Europe.

Broad incumbents

• PetroChina: China's largest state-owned integrated oil company and SOMO's largest customer. Functions as both buyer and strategic counterpart in bilateral crude offtake and field development cooperation, making it a structural counterpart rather than pure competitor.

Direct peers

• NNPC Limited: Nigeria's state-owned national oil company responsible for marketing Nigerian crude grades. Comparable state-mandated wholesale/marketing structure and similar exposure to crude pricing benchmark disputes and pipeline disruptions.
• Sonatrach: Algeria's state-owned national oil company and sole marketer of Algerian crude and petroleum products. Operates the same state-mandated wholesale export model to European and Asian refiners.
• Kuwait Petroleum Corporation (KPC): Kuwait's state-owned national oil company responsible for marketing all Kuwaiti crude exports. Functions as a direct peer in state-mandated crude oil marketing and export contracting, serving overlapping Asian and European refiners.
• National Iranian Oil Company (NIOC): Iran's state oil marketing organization operating under similar exclusive mandate for Iranian crude exports. Comparable in structure, scale of state monopoly, and exposure to geopolitical/sanctions risk.
• Abu Dhabi National Oil Company (ADNOC): UAE's state-owned national oil company and sole marketer of Abu Dhabi crude. Sets Murban OSP against the same Dubai/Oman benchmark SOMO references and competes head-to-head with Basrah crude for Asian refiner demand.
• Petronas: Malaysia's state-owned national oil company. Comparable as a state monopoly oil marketer serving Asian refiners and managing OSPs for Malaysian crude grades competing with Basrah Medium/Heavy in the Asian market.
• Saudi Aramco: Saudi Arabia's national oil company and state oil marketing organization. Operates the same exclusive state-mandated wholesale/marketing function for Saudi crude oil, sets OSPs, and serves the same global refiner buyer base (China, India, Korea, Japan, Europe).

Market position

Strengths4 records

Weaknesses4 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/oil-marketing-company-somo-

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about SOMO