Medco appointed to sell 2 million barrels of Iraqi crude to Asian market

The Medco Group has been entrusted by the Iraqi government to sell about 2 million barrels of crude to Asian market under the UN's oil for food program, according the group's chief executive officer Hilmi Panigoro.

Out of the 2 million barrels of crude, Hilmi said, Medco had shipped one million barrels through two shipments, namely one on Nov. 2 and the other one on Nov. 22.

"We sold most of the crude to Japan because Japan was Iraq's biggest oil importer before the embargo was slapped on Iraq," Hilmi said in Baghdad on Monday.

Hilmi explained that Medco sold Iraqi crude at $29 per barrel, and therefore the total sales value of Iraqi crude would reach $58 million.

All the money would be transferred to the UN, after reduced by certain fee, and the UN would use the fund to buy food and medicines for Iraqi people.

Hilmi, accompanied by other Medco executives and also executives of the Indonesian Democratic Party of Struggle led by Arifin Panigoro - the chairman of the Medco Group - conducted a visit to Iraq to meet with executives of Iraqi ruling party, the Baath Party.

Hilmi explained that the crude Medco was selling did not belong to the crude allocated for barter trade with Indonesia, that was also conducted under the UN food for oil program.

Nevertheless, Hilmi said that Medco would also join the tendering for the transportation of crude from Iraq to Indonesia under the barter deal.

In addition, Hilmi said, Medco was also studying the possibility of investing in the oil exploration sector in Iraq. But he did not give further details. (*)