Iranian oil tanker set to arrive in South Korea

An Iranian supertanker is scheduled to arrive at Daesan port as South Korea continues to import oil from the Islamic Republic despite Western sanctions against Iran’s energy sector.

The Motion, which is owned by the National Iranian Tanker Company and has the capacity to carry two million barrels of oil, left Kharg Island in the Persian Gulf in early November, according to transmissions captured by IHS Inc.

Hyundai Oilbank Company operates a 395,000 barrel-a-day refinery in Daesan on South Korea’s west coast.

At the beginning of 2012, the United States and the EU imposed sanctions on Iran’s oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

The EU sanctions, which prevent member states from purchasing Iran’s oil or extending insurance coverage to tankers carrying Iranian crude, took effect on July 1.

South Korea halted crude purchases from Iran in August and September after its refiners lost insurance coverage on ships because of the sanctions imposed on Iran.

However, Iran responded by using state-owned tankers to carry cargoes, a move that would allow South Korea to receive crude shipments without concerns over insurance guarantees.