Abu dhabi: Iraq is set to contract international companies to manage the export of crude oil for a designated period of three months, starting from September 1, 2026. This strategic move is part of an initiative by the Iraqi government to enhance its export and import capacities through collaborations with specialised international and local companies.

According to Emirates News Agency, the Council of Ministers, led by Prime Minister Ali Faleh Al-Zaidi, has sanctioned the necessary mechanisms to facilitate this process. The plan includes securing contracts for crude oil exports, with pricing set either by the State Organisation for Marketing of Oil (SOMO) or as per the federal budget, whichever is lower. These prices will be offered at a 30% discount, subject to annual determination, and the payments will be directed to the Public Treasury, with a detailed financial review to follow.

Additionally, the Council has given exceptional approvals for increasing export and import capacities. The Minister of Oil has been authorized to set up additional transportation routes for existing contracts and to renew them. In a bid to ensure stable supplies and prevent potential crises, the Minister is also empowered to approve the import of petroleum products when deemed necessary.