Page 11 - MEOG Week 38

MEOG ProJeCts & ComPAnies MEOG
Russian tech execs meet with Tehran Chamber of Commerce
irAn
A delegation of business executives from Russia’s tomsk Province largely active in the oil and gas equipment industry has met with officials of teh- ran Chamber of Commerce (tCCIm) to discuss commercial opportunities, according to Iran’s official energy news agency shana reported.
There is a growing appetite in certain business circles for information on potential Russian-Ira- nian trade and investment deals with Iran in late October set to come under a temporary free trade zone arranged with the moscow-led Eura- sian Economic Union (EEU).
members of the delegation that came to tehran included private sector representatives of the hydrocarbon drilling industry, offshore
environmental technologies and optical filter technologies. Experts in industrial development were also part of the mission.
Reza Padidar, chairman of the Energy and Environment Committee of tCCIm, report- edly suggested that the two sides could soon sign deals to develop the energy industry in Iran’s south.
Padidar was cited as saying: “Iran is interested in accessing the latest technologies in the world and it is [for instance] ready to cooperate in the fields of well equipment, production of Ess and EsP pumps, alloy pumps and gathering gas flares with transferral to the production line.”™
tenders
Iran sells products on IRENEX
irAn
IRANIAN state broadcaster IRIB reported that the National Iranian Oil Co. (NIOC) had sold 450,000 tonnes of oil products to foreign buyers over the Iran Energy Exchange (IRENEX) last week. It said that the goods were valued at a total of $160.6mn.
the report said that the products were: 168,000 tonnes of gasoline ($64.3mn), 162,500 tonnes of gasoil ($73.9mn), 20,000 tonnes of kerosene and 50,000 tonnes of liquefied petro- leum gas (LPG). Values were not given for the kerosene and LPG.
tehran has been experimenting with selling crude over the exchange in response to the Us ramping up pressure on Iranian oil customers to reduce shipments, with oil products joining the slate in recent months. It has held offerings of light and heavy crude on IRENEX since October 28 last year as it tries to provide a variety of sales mechanisms to appeal to buyers.
In an effort to entice more buyers, the minis- try of Petroleum (moP) cut the minimum pur- chase order for the June 11 offering from 35,000 barrels to 1,000 barrels for land delivery, while the clearance period for payments has been extended from 60 days to 90. shana added that interested parties must pay 6% of their order value in local or foreign currency by 12:30pm local time (Gmt+4:30), two hours before trad- ing begins.
Cargoes can either be delivered by sea at the Kharg Island terminal or by land at the tabriz Refinery.
NIOC offered 2mn barrels of gas condensate
on June 3 at $67.14 per barrel, with the minimum purchase noted at 1,000 barrels.
The amendments to the purchase and pay- ment terms are nothing new. An amendment to the Iranian budget was approved on February 17, requiring the ministry of Petroleum (moP) to offer 2mn barrels per month of light crude on IRENEX. This came in addition to the 2mn bar- rels of heavy crude oil and 2mn barrels of natural gas condensates and natural gas the ministry was already obliged to supply to the exchange.
However, middle East Oil & Gas (mEOG) reported as of June 11 that a total of just 1.1mn barrels of crude had been sold over the exchange.
With the response from buyers muted, Fars News Agency quoted Assadolla Qarekhani, a member of the majlis Energy Commission, as saying that Parliament had agreed that more needed to be done to entice buyers.
Qarekhani said that the current discount of 5% to Persian Gulf free on board (FOB) prices was not attractive enough. He told Fars: “maj- lis is ready to let discount rates up to 15% to help improve oil sales via IRENEX.” Qarekhani added: “Offering discounts to boost oil export is better.”
In early August, National Iranian Oil Prod- ucts Distribution Co. (NIOPDC) offered 18,000 tonnes of gasoline on IRENEX, with 5,000 tonnes sold for export to Afghanistan, Armenia and the Kurdistan Region of northern Iraq.
NIOPDC offered another 10,000 tonnes of gasoline on the exchange in late August, with 500 tonnes purchased by domestic buyers.™
Week 38 24•September•2019 w w w . N E W S B A S E . c o m P11