SOMO, Lukoil set up trading firm

DUBAI, May 2, 2017 – Iraq’s Oil Marketing Company (SOMO) and the unit responsible for the international marketing and trading of Lukoil crude, Litasco, have reportedly set up a new entity following their April 4 joint venture agreement.

According to industry sources, LIMA Energy, as the venture is called, has been established at the Dubai Multi Commodities Centre in the UAE to trade in Iraq and Russian crude, as well as other grades.

In a statement on its website, the Ministry of Oil in April said SOMO and Litaso would also co-operate on the education and training of staff.

Sources speaking to Reuters on Tuesday said LIMA mirrors commodity trading company Oman Trading International, which has its origins in a joint venture between Vitol and Oman Oil.

“LIMA will lift the first cargo of Iraqi crude in May,” people familiar with the matter said, adding that as many as 10 SOMO staff members could be transferred to LIMA.

Tasked with the sale and marketing of all Iraqi crude available for exports, SOMO last week sold 2 million barrels of Basra light on the Dubai Mercantile Exchange. The auction, a first for the entity, attracted some 40 bids from various traders and refiners.

The Ministry of Oil’s trading branch oversaw exports of 3.756 million bopd in March.

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