Most “SOMO Offers” Pass Through a Chain of Middlemen.

Here’s What Buying Straight from the Allocation Looks Like.

Petrolodex holds a direct SOMO allocation and sells as principal. Basrah crude, Kirkuk, fuel oil, naphtha, diesel, gasoline, Jet A-1 and Sulphur, FOB Iraq, with nobody standing in between.

If you’ve ever tried to buy Iraqi crude, you know the routine. Someone emails a “SOMO allocation.” It’s been forwarded four times. Nobody on the thread can tell you who actually holds the contract. And before you’ve seen a single document, somebody wants a fee.

Sound familiar? It’s the reason so many serious buyers have given up on Iraqi barrels altogether. That’s a shame, because Iraq ships some of the most widely traded crude in the world.

So, let’s cut through it. This is what SOMO is, what it sells, and what changes when you buy from a company that holds the allocation itself.

First, What is SOMO?

SOMO, the State Organization for Marketing of Oil, is the Iraqi state body that markets and sells Iraq’s crude oil and petroleum products internationally. It sets official selling prices, approves buyers, programes liftings and runs tenders for refined products.

SOMO is strict about who it deals with, and it publishes its terms. That’s good for the market. The trouble is the crowd of people outside the gate who claim they can get you in.

How Can You Tell if a SOMO Offer Is Real?

A genuine SOMO offer comes from a named company that can show it holds the allocation, and it asks for nothing before a signed SPA. If the seller can’t identify the allocation holder, or wants money up front, it isn’t real.

SOMO itself has warned that forged contracts and correspondence circulated “by fax, email or any other means” are illegal, and has said it can take legal action against anyone falsely claiming a contract with it.

Watch for these signs:

• The offer has been forwarded through several people and nobody will name the seller
• You’re asked for a fee, a “procedure charge” or a deposit before an SPA
• The specs are vague or don’t match SOMO’s published grades
• There’s no load port, no laycan and no inspection company named
• The price is far below what SOMO’s own official selling price would allow

Why Iraqi Barrels Matter Right Now

Volumes are back up. Iraq’s exports averaged more than 3.4 million barrels a day in October 2026, close to the 3.3 to 3.5 million it shipped at its normal pace, and most of that still loads at the southern terminals at Basrah. Across the first nine months of the year, SOMO data show about 533 million barrels exported.

And pricing has been sharp. SOMO offered discounts of up to $37 a barrel on October-loading crude to offset higher freight costs. For refiners who can run medium and heavy sour grades, that’s a window worth paying attention to. But only if you can actually get a cargo.

Who buys Iraqi Crude Oil?

Asia buys the most Iraqi crude, followed by Europe and then the United States. That’s the order SOMO’s own director gave in October 2026.

The point for a buyer: the same grades that run through refineries in Asia, Europe and the Americas are what Petrolodex sells, from the same load points and on the same SOMO terms.

What Iraqi crude and products can Petrolodex supply?

Petrolodex Corporation FZCO holds a direct SOMO allocation and sells as principal. Everything below is offered FOB Iraqi load points, or FOB Ceyhan, Türkiye for Kirkuk Blend.

Crude Oil

*Basrah Light is offered only when SOMO export allocation is available.

Refined Products and Sulphur

*Subject to SOMO export availability for the loading month. Final quality for every product is per the SOMO certificate at the load port.

A note on the fuel oils: straight run HSFO and HFO are supplied to SOMO’s own specification. They make excellent refinery feedstock and power plant fuel, but they aren’t sold as ISO 8217 marine bunkers, so any blending sits with the buyer. Some products also have Ex-Works truck options from Iraqi refinery depots, which SOMO tenders directly.

What Changes When You Buy from a Direct Allocation Holder?

You deal with one seller, on one contract, with no commission stack and nothing paid before an SPA.

• One seller. Petrolodex sells as principal. There are no extra resellers, title transfers or storage legs between the load port and your vessel.
• A price closer to the source. Every extra party in a chain adds a margin. Fewer parties means a cleaner price.
• No upfront fees. Nothing is payable to Petrolodex, and nothing of any kind is due before a signed SPA.
• Payment at loading. Payment is by transferable documentary letter of credit, payable at loading against the Bill of Lading.
• Independent inspection. Quality and quantity are checked at the load port by SGS, Intertek, Bureau Veritas or Saybolt.
• Help with the ship. Buying FOB doesn’t mean you’re on your own. Petrolodex can help with vessel sourcing, Q88 acceptance, freight and insurance at the buyer’s cost, while the sale stays FOB.
• A route to term supply. Start with a trial lifting, then move to a 12 month contract that can be extended.

How Does Buying a SOMO Cargo Work?

SOMO’s process is strict, and that protects both sides. Here’s how a Petrolodex purchase runs:

1. ICPO and KYC. You send an irrevocable corporate purchase order on company letterhead, with your company information sheet and a bank comfort letter from a SOMO approved bank.
2. FCO, then SPA. After KYC, Petrolodex issues a full corporate offer with price terms. Once you sign it, a draft SPA follows.
3. Performance guarantee. 1% of cargo value for crude, 5% for refined products. It isn’t a payment, and it’s returned after a successful lifting.
4. Vessel and letter of credit. You nominate your vessel (Q88 for tankers), and your bank opens a transferable LC for 110% of cargo value, advised through Trade Bank of Iraq.
5. Laycan, insurance and loading. The laycan follows SOMO’s programme, you place cargo insurance, and loading takes place under independent inspection.
6. Payment and title. Payment is made at loading. Title and risk pass to you at the FOB point, and your guarantee is returned.

It’s more paperwork than a quick spot deal. It’s also the reason legitimate Iraqi cargoes don’t disappear halfway through.

Who Is This Supply For?

• Refiners running medium or heavy sour crude
• Power producers and industrial users burning fuel oil
• Petrochemical plants that need naphtha
• Fuel distributors buying diesel, gasoline or jet fuel
• Fertiliser producers buying sulphur

Petrolodex already supplies buyers across North America, South America, EMEA and Asia Pacific, always on the same model: direct trading, not brokerage.

The Bottom Line

Iraqi oil is flowing, priced to compete, and in steady demand. Getting it was never the hard part. Finding a seller actually connected to it was.

Petrolodex is. Same SOMO rules, same SOMO quality, one direct seller and no chain in between.

Get the SOMO Product Sheet

Want the full list of grades, load points and volumes in one page? Tell us your company, the product you’re interested in and your monthly volume, and our desk will send the SOMO Product Sheet and indicative terms.

Request the SOMO Product Sheet or email info@petrolodex.com. You can also call +971 4 558 1599.

Petrolodex Corporation FZCO, Office 1904, Damac XL Tower, Business Bay, Dubai, UAE.

Frequently Asked Questions

What is SOMO?

SOMO, the State Organization for Marketing of Oil, is the Iraqi state body that markets and sells Iraq’s crude oil and petroleum products internationally. It sets official selling prices, approves buyers and programmes liftings.

What is a direct SOMO allocation holder?

A company that has been allocated product by SOMO itself, rather than one reselling access through other parties. Petrolodex Corporation FZCO is a direct SOMO allocation holder and sells as principal, without intermediary sellers, title transfers or storage legs.

How can I tell if a SOMO crude offer is fake?

Be wary if nobody can name the allocation holder, if you’re asked for any fee before a signed SPA, or if the offer lacks a load port, laycan and named inspection company. SOMO has warned that forged contracts circulated by email or fax are illegal.

Which Iraqi products does Petrolodex supply?

Basrah Medium, Basrah Heavy, Basrah Light (when allocated), Kirkuk Blend and Qayara crude, plus straight run HSFO, HFO, naphtha, gasoil and diesel, gasoline, vacuum residue, Jet A-1 and sulphur, all FOB Iraqi load points or FOB Ceyhan for Kirkuk.

What are the specs of Basrah Medium and Basrah Heavy?

Indicatively, Basrah Medium is about 29 API with 3.00% sulphur and Basrah Heavy about 24 API with 4.05% sulphur. Both load at the Basrah Oil Terminal, KAAOT or the SPMs, typically as 2 million barrel VLCC cargoes.

How do you pay for a SOMO cargo?

By transferable irrevocable documentary letter of credit (MT700) for 110% of cargo value, from a SOMO approved bank and advised through Trade Bank of Iraq, payable at loading against the Bill of Lading. Nothing is payable to Petrolodex before a signed SPA.

Who are the biggest buyers of Iraqi crude oil?

China and India. In 2024 China imported more than 1.1 million barrels a day and India nearly 900,000, together about 62% of Iraq’s exports. Europe took about 21%, and US companies, Türkiye and other MENA buyers are regular customers.

Does Petrolodex act as a broker?

No. Petrolodex trades principal to principal. It holds a direct SOMO allocation and sells to buyers directly, with one contract and one point of accountability.