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Iran working on long-term oil sales plan

7 August 2016 20:12

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Iran says it is working on a plan that guarantees long-term purchases of its crude oil by European clients in a post-sanctions era.

Mohsen Qamsari, the director for international affairs of the National Iranian Oil Company (NIOC) has been quoted by the media as saying that the plan envisages moving from sport contracts toward long-term agreements.

Qamsari added that Iran’s current sales of oil to Europe are carried out through both schemes. He emphasized that long-term agreements secure stable sales of oil thus better protecting the interests of the country in terms of national revenues.

After the sanctions against Iran were removed in January, companies from Italy, Spain, Greece, France and Britain sealed deals to purchase crude oil from Iran – most of them spot purchase agreements.

The sanctions limited Iran’s oil exports to around 1 million barrels per day (mbp/d). They severely undermine the country’s presence in global oil markets. However, Iran has been able to make significant achievements in its efforts to regain the share of the market it lost as a result of multiple-year sanctions.

The country is today exporting above 2 mbp/d. Figures show a majority of the exports are made to the country’s Asian clients that come from India, South Korea, Japan, and China.

The Wall Street Journal in a report last month quoted Iranian officials as saying that the country’s exports of oil to Europe have reached 0.4 mbp/d and that the exports to EU clients will rise to as high as 0.7 mbp/d within the next months. This, the report added, after the country seals new deals with Greece, France and Italy.

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