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Crude exports to Europe to reach 800k bpd

Deputy oil minister said volume of Iran’s crude exports will climb from the current 500 thousand to 800 thousand barrels per day within two months.

Crude exports to Europe to reach 800k bpd
(Thursday, April 6, 2017) 08:12

On signing of study MoUs for oil fields with international firms, Ali Kardor said technical studies in fields are financed by contractors who will receive no payments if no final contract is signed.

“Pertamina of Indonesia, Russia’s Lukoil, Inpex of Japan, France’s Total as well as Wntershall of Germany have submitted results of their technical studies over Ab Teimour, South Azadegan and Band-e Karkheh oil fields,” he continued.

The official noted that Total had also submitted study results for South Pars Phase 11 adding that the MoUs with international companies were still effective since their deadlines would expire in four months’ time.

Kardor touched upon inviting tenders for developing oilfields stating that plans were made for putting South Azadegan out to tender though a similar plan has been predicted for Yadavaran field.

Managing Director of National Iranian Oil Company (NIOC) referred to partnership of France’s Total in development of South Pars Phase 11 saying “an expert team from the French firms is now active in Iran though we have called for presence of their full team inside the country.”

He recalled that the contract between NIOC and Total will be initiated in the current week if the French team stays in Tehran; otherwise, the issue will take place following Nowruz holidays.

On comments made by Total CEO that his company would wait to find out whether anti-Iran sanctions are extended by Donald Trump, the oil official said NIOC and Total were seeking to issue a joint statement in this regard though agreements were not reached.

“The French government has reassured Total oil giant that it would welcome its investment in Iran,” he underscored.

He said one advantage of new model of oil contracts dubbed as Iranian Petroleum Contracts (IPCs) was that foreign parties were required to be accompanies with a credible bank so that monetary transactions are carried out at ease.

As such, Total intends to invite German banks to Iran, said deputy Iranian oil minister.

Kardor stated that Iran’s crude exports stood at an average of 2.298 million barrels per day in February; “including exports of 700 thousand barrels of gas condensate in the meantime, the exports volume for oil and gas condensate in February climbed to the unprecedented level of over three million barrels per day.”

He pointed to emergence of new export markets in the post-sanction era saying “Total and Royal Dutch Shell have each purchased two 2-million-barrel cargos.”

The official said another cargo with a volume of two million barrels had been also delivered to Eni of Italy; “the Italian firm has also asked for another shipment in the Mediterranean though no contract has been inked yet.”

NIOC head said no barriers existed as regards transferring oil revenues to the country as well as that Indians have promised t settler the remaining amount of their debts by the end of March.

“Debts of Greek companies and some small firms mount to about 2.5 million dollars,” emphasized the official clarifying that these firms have once purchased one cargo of oil from Iran and later faced financial difficulties.”

Ali Kardor maintained that Iran was selling 500,000 barrels of crude oil to Europe per day though NIOC was seeking to increase the figure to 800 thousand barrels in the coming two months.

On the rise in Iran’s oil output, NIOC managing director said the country will be producing four million barrels of crude oil by April 20, 2017.

During sanction years, Iran recovered approximately 2.7 million barrels of crude oil per day one million barrels of which were shipped to international markets.

At the time, China, South Korea, Japan, India and Turkey were the only buyer of the Iranian product though removal of sanctions alleviated limitations against Iran’s crude exports.

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