SOMO TERMS

Description

SOMO Sales Terms & Strategic Allocation Policy
Official Representation & Compliance Framework for Crude Oil Procurement
1. Mandatory Prequalification Criteria
In accordance with SOMO’s strict vetting procedures, any company seeking to procure Iraqi crude must demonstrate the following through our firm:
Refining Capacity: The primary criterion for eligibility is the ownership of a fully operational refinery or a documented equity stake in one.
Financial Solvency: Proof of financial adequacy and creditworthiness must be provided via international specialized reporting and certified banking institutions.
Compliance & Sanctions: Applicants must not be subject to international sanctions and must maintain a transparent, reputable corporate history.
Exclusion Policy: Companies that fail to meet these criteria will be formally notified of their ineligibility and blacklisted from future allocation cycles.
2. Official Communication & Submission Protocol
Intermediary Representation: To act on your behalf, our company requires a formal Letter of Authorization (LOA) and a complete Know Your Customer (KYC) dossier.

Prohibition of Informal Requests: Hand-delivered applications or requests via non-official channels (diplomatic missions, agents without specific mandates, or non-verified organizations) will be strictly ignored.
3. Allocation & Contractual Structure
Term Contracts: Iraqi crude is primarily sold through Annual Term Contracts. These are classified as long-term agreements to ensure stability, as opposed to the volatile “Spot Cargo” market.
Priority Allocation: Preference is given to vertically integrated companies (those involved in exploration, production, and refining) capable of absorbing price volatility.
Performance Review: Quantities are reviewed annually based on market conditions, the company’s performance in previous cycles, and total export availability.
Strategic Longevity: SOMO has successfully concluded long-term contracts for durations of up to ten (10) years with reputable global partners, ensuring a sustainable outlet for Iraqi production.

4. Required Documentation for Representation
To initiate the representation process through our firm, the following “Intermediary Package” must be submitted:
Letter of Intent (LOI) addressed to SOMO via our representation.
Authorization Letter appointing our company as the official facilitator.
Refinery Profile: Documentation proving ownership/operation of refining assets.
Financial Statement: Audited reports for the last three fiscal years.
Company CP (Company Profile): Detailing global operations and logistics capabilities.

Note to Client: Our role is to ensure your documentation meets the high-standard “Redline” requirements of Iraqi oil marketing. We bridge the gap between global importers and the specific procedural demands of the Iraqi State.