Page 13 - DMEA Week 11 2023

DMEA FUELS DMEA

Iran offering crude, gas

and condensate on IRENEX

IRAN IRANIAN Oil Minister Javad Owji said at the response to the US ramping up pressure on Ira-
weekend that crude oil and gas condensates nian oil customers to reduce shipments, with oil
would be sold to foreign customers on the Iran products joining the slate in recent months. It
Energy Exchange (IRENEX). has held offerings of light and heavy crude on
He said they would be available to domes- IRENEX since October 28, 2018 as it tries to
tic buyers at the same price during a particular provide a variety of sales mechanisms to appeal
period and expressed optimism that neighbour- to buyers. In an effort to entice more buyers, the
ing countries would be interested in purchasing Ministry of Petroleum (MoP) cut the minimum
certificates of deposit (CDs). purchase order from 35,000 barrels to 1,000 bar-
During the unveiling of the crude oil and gas rels for land delivery, while the clearance period
condensate CDs, the minister stated that the for payments extended from 60 days to 90. Inter-
plan, which aims to encourage domestic inves- ested parties have to pay 6% of their order value
tors and the general public to help sell oil, had in local or foreign currency two hours before
been studied for over a year. trading begins.
Owji revealed that IRENEX would offer The MoP specified that cargoes could either
72mn barrels of crude oil and gas condensates be delivered by sea at the Kharg Island terminal
annually through the issuance of CDs. The min- or by land at the Tabriz Refinery.
ister emphasised that CDs help to diversify and The amendments to the purchase and pay-
increase the transparency of exports. He said ment terms are nothing new. An amendment to
that the National Iranian Oil Co. (NIOC) had the Iranian budget was approved on February
worked with the country’s economic sector for 17, 2019, requiring the MoP to offer 2mn barrels
16 months to examine the newly unveiled trans- per month of light crude on IRENEX. This came
actions and accomplish the plan’s objectives. in addition to the 2mn barrels of heavy crude oil
The minister commended NIOC managing and 2mn barrels of natural gas condensates and
director Mohsen Khojastehmehr for initiating natural gas the ministry was already obliged to
the plan of transacting crude oil and gas con- supply to the exchange.
densates through CDs. However, in the first few months following
Tehran began experimenting with selling that announcement, a total of just 1.1mn barrels
crude over the exchange in 2018 and 2019 in of crude was sold over the exchange.™

Week 11 16•March•2023 www. NEWSBASE .com P13