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Iran plans to complete new oil export terminal by year-end

Iran expects to complete a pipeline and a terminal to export a new grade of crude by year-end, boosting the country's drive to ramp up oil production to pre-sanctions levels.

Iran plans to complete new oil export terminal by year-end
(Friday, October 13, 2017) 09:31

A senior official from the National Iranian Oil Company said that the terminal near Kharg Island in Persian Gulf would be ready to export the new grade of crude, known as West Kharoon, after the facilities were completed "sometime by the end of this year".

Iran oil officials have said it will be ready to enter talks on a possible oil supply freeze with other OPEC members once it returns output to levels before sanctions were imposed on its crude imports.

"As soon as (the pipeline and terminal are) completed, we will be able to segregate and export this crude," Mohsen Ghamsari, director for international affairs at the National Iranian Oil Company, told Reuters.

Initial production of the new grade may be just under 300,000 barrels per day, making it key in boosting Iranian production, he said. The grade was originally expected to be introduced to the market earlier this year.

The crude blend will be of similar quality to Iraq's Basra Heavy crude, with an API gravity of between 22 and 26 degrees and a sulphur content higher than 2 percent.

Ghamsari said earlier on Monday Iran is producing just over 3.8 million bpd of crude and could reach 4 million bpd in a few months.

"We are ready to negotiate the level of production as soon as we come back to the production before sanctions," Ghamsari said, adding that output was a little higher than 4 million bpd before sanctions.

A nod from Iran is key in getting members of the Organization of Petroleum Exporting Countries to agree to a deal to freeze production which could curb excess supply globally and support oil prices.

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