The Iraqi oil-marketing firm, SOMO, awarded contracts for diesel importation to ZhenHua Oil, BB Energy, Litasco, and Lima, sources told Reuters.

The tender was for 2.37 million tons of diesel. The diesel is to be delivered next year, the news agency reports.

The contracts awarded by SOMO are for approximately 600,000 tons–or roughly 25% of the total tender–per company, according to Reuters.

Iraq will pay a premium of $3.97-$4.44 per barrel above regional benchmark prices, one of Reuters’ sources said.

After years of unrest, Iraq lacks the refining capacity to meet its domestic needs, according to Reuters, despite its vast oil reserves.

This contract represents ZhenHua’s first foray into Iraq’s diesel-import market, the news agency reports. ZhenHua is a Chinese state-owned and managed oil company.

BB Energy and Litasco are international energy trading companies. Litasco is a subsidiary of Lukoil.