Sinopec in JV to secure distribution of Iraqi oil after Iranian sanctions go

Iraq oilIraq’s government State Organization for Marketing of Oil (SOMO) oil concern and China’s largest oil refining company Sinopec are planning to create a joint venture to establish a stable distribution channel for Iraqi oil as Baghdad braces itself for increased competition from Iran when sanctions are lifted. The 50-50 joint venture is expected to be based in Singapore, with Iraq supplying the tankers and China the finance.
Tehran has indicated that it plans to just about double oil exports post sanctions, from 1.2 to 2.3 bmp. Iraq’s sustainable crude oil production capacity is currently estimated at 4.1 bpm, although that is under constant threat from Daesh in the north of the country and by Syria’s instability.

Source: Rosbalt