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UPDATE: Iraq seeks pre-payment for oil exports

A new proposal from SOMO asks crude buyers to pay up front for a year's worth of exports to secure a 5-year supply — part of Iraq's response to a cash-flow crisis.
Alaa al-Yassiri, the director general of Iraq's State Oil Marketing Organization, at the Nov. 30, 2017, OPEC meeting in Vienna. (BEN LANDO/Iraq Oil Report)

UPDATE: This story has been updated to include additional details and contextual information about SOMO and KRG oil sales.

Iraq is seeking a cash injection of at least $1.7 billion by offering crude buyers a deal to pre-pay for a year's worth of oil supply — the first time the federal government has tried to leverage a portion of its future oil exports to generate financing.

Alaa al-Yassiri, the director general of the State Oil Marketing Organization (SOMO), communicated the offer — "a long-term crude supply deal in exchange for prepayment for a fraction of the total allocated quantity" — in a Nov. 23 letter to buyers, which was obtained by Iraq Oil Report.

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