Japan's Fuji Oil loads Iran oil, first cargo since U.S. sanctions waiver

11:43 (Tuesday, February 5, 2019)

Fuji Oil, jointly with Showa Shell, has loaded the first Iranian crude oil cargo being lifted by Japanese refiners since the country won a 180-day waiver from the US to import oil from Iran, a Fuji Oil official told S&P Global Platts Monday.

Fuji Oil, jointly with Showa Shell, has loaded the first Iranian crude oil cargo being lifted by Japanese refiners since the country won a 180-day waiver from the US to import oil from Iran, a Fuji Oil official told S&P Global Platts Monday.

The Japanese refiners jointly lifted an Iranian heavy crude in a 50:50 split cargo to be discharged at Fuji Oil and Showa Shell's respective refineries, the Fuji Oil official said.

The move also marks Japan's first loading of Iranian crude since the country received the 180-day waiver from the US on November 5.

S&P Global Platts trade flow software cFlow also showed that the cargo-laden VLCC Kisogawa left Iran's Kharg Island Sunday bound for Sodegaura, Tokyo Bay.

Both Fuji Oil and Showa Shell are Japan's major Iranian crude buyers.

Fuji Oil and Showa Shell's loading of Iranian crude comes after Platts reported on January 15 that major Japanese banks are set to resume Iranian oil transactions after receiving final regulatory clearance, paving the way for the country's refiners to begin loadings as early as this month.

Japanese refiners and shipping companies recently resolved their concerns over relevant shipping insurance for Iranian imports and were awaiting bank and regulatory approval before resuming inflows.

Japan did not import any crude from Iran in November. The country last recorded zero Iranian oil imports in July 2012 during the last international sanctions against Tehran. There was a brief suspension of loadings from Iran until the introduction of government-backed shipping insurance for protection and indemnity cover.

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