The Ministry of Oil confirmed today, Sunday, that the national refineries are operating at full production capacity, indicating that securing strategic fuel reserves is being done through long-term contracts. It noted that exports from the south and north stand at 2.6 million barrels per day amid challenges in the Strait of Hormuz.
The ministry's spokesperson, Salim al-R kabbi, stated in a statement accessed by the News Video Agency that "contracts for quantities of upgraded gasoline and gas oil are aimed at covering local needs and enhancing strategic reserves," pointing out that "the contracted quantities average 4,000-5,000 cubic meters per day, depending on availability from imports."
He added that "the refineries are working at full production capacity and there is a plan to increase refining capacity through the expansion of national refineries, including the Diwaniyah and Maysan refineries," noting that "the largest quantities of exports are through the southern ports, which are definitely affected by changes in maritime navigation and the developments in the Strait of Hormuz, while the remaining quantities are through other Turkish and Syrian outlets."
He clarified that "SOMO sells crude oil through offered methods at the ports at the best prices presented to them and sells at a fixed discount price, and negotiations are held to raise the offered prices," explaining that "the quantity contracted for upgraded gasoline and gas oil is larger, for months, but what is being prepared daily to compensate for the gap between production and consumption is the quantities mentioned."
He continued: "The average exports to the south are around 2.4 million barrels and to the north around 200,000 barrels," pointing out that "the national refineries are currently operating at full production capacity, with a plan to increase refining capacity through the expansion of the refineries, including the Diwaniyah and Maysan refineries."