NEW DELHI/BAGHDAD - Abu Dhabi National Oil Co (ADNOC), acting through its trading unit, has purchased millions of barrels of discounted crude from Iraq's state oil marketing organisation (SOMO), according to three people familiar with the transactions.
Two Iraqi energy sources said ADNOC emerged as the largest lifter of Iraqi crude in August and September, a role that supported a recovery in Iraqi exports after volumes were sharply limited in the earlier months of the Iran war. The purchases took place amid widespread discounting by SOMO to attract buyers for cargoes loading in August.
One Iraqi source provided specific transaction details: ADNOC agreed to acquire 32 million barrels of Iraqi crude for August loading at discounts between $24.90 and $27 per barrel. In September, the same source said ADNOC contracted another 40 million barrels, comprised of 10 million barrels at an $18-per-barrel discount and 30 million barrels at a $25-per-barrel discount.
A second Iraqi source described a difference between allocation and actual lifting in August. SOMO allocated 32 million barrels to ADNOC for August carriage, but export constraints and Basra Oil Company's inability to secure enough crude meant ADNOC lifted 20 million barrels. That source also said ADNOC has lifted 14 million Iraqi barrels so far in September.
A third source added that ADNOC purchased about 20 million barrels from SOMO in tenders carrying discounts of $25 to $27 per barrel for liftings scheduled between September and October.
Multiple trading houses and oil majors were drawn to SOMO's steeply discounted August-loading cargoes, the sources said. Buyers included Chinese state majors PetroChina and Zhenhua Oil, along with international firms TotalEnergies, Vitol, Trafigura, Mercuria and Cathay Petroleum.
Context and market role
The reported purchases indicate ADNOC's expanding function as an active trader of crude sourced from Iraq, especially during periods of disruption linked to the Iran war. By lifting large volumes in August and September, ADNOC contributed to a partial restoration of exports that had been curtailed earlier in the conflict.
The information above is drawn from sources familiar with the transactions; details reflect allocations, liftings and discount levels reported by those sources.