Page 40 - IRANRptDec20

9.0​ Industry & Sectors 9.1 ​Sector news
9.1.1​ Oil & gas sector news
Iranian oil minister warns of difficult OPEC negotiations
TankerTrackers estimates Iran’s oil exports at 800,000 b/d in April-Sep
Pipeline giving Iranian oil exports direct Indian Ocean access ‘on schedule
OPEC talks on an extension of the current quotas for oil production from January 2021 instead of increasing output will not be easy, Iranian Oil Minister Bijan Namdar Zanganeh said, SHANA reported on November 30. Iran is looking to boost its market share but with the depression in the market from the coronavirus (COVID-19) in recent months and opposition from other producers, the country continues to suffer from under-production.
"It is unlikely that we will have an easy meeting. Some participants oppose the current quotas," he said.
"As far as I can understand, some [of the] countries opposed [to this] are Russia, the United Arab Emirates and Kazakhstan," SHANA quoted him as saying.
"I just heard that the UAE may offer a 7.2mn barrel per day (bpd) production cut for the first three months of 2021, and not the current 7.7mn bpd," Zanganeh added.
Interfax reported that there are several discussions for extending the existing quotas for the first quarter of 2021; however, negotiations are ongoing.
In April, OPEC and non-OPEC countries agreed to an unprecedented, concerted cut in oil production after a quarter of oil demand fell due to the COVID-19 pandemic.
The decision was made immediately for two years, but with a gradual increase in output; however, the pressures have put a strain on production.
However, due to the turbulence in the market and the return of prices to levels below $40 per barrel, countries started talking about a postponement of the increase in oil production by a quarter or even half a year.
Satellite-based TankerTrackers.com on November 11 estimated that Iran’s crude oil exports amounted to an average 800,000 b/d in from April to September despite the continued application of US sanctions that aim to drive its shipments entirely off world markets.
Earlier, an average daily bracket of 600,000 to 700,000 b/d since March was given by the deputy head of the Iranian budget and planning organisation, Hamid Pourmohammadi, as reported by the official Fars news agency. Later on November 11, the news agency reported the official as retracting his comment, indicating the figures he quoted actually referred to export plans for next year and may include both targeted petroleum and crude oil consignments. It is thought that officials are forbidden from discussing Iran's oil export data given the sensitivity of the issue.
Given the scrutiny of the Donald Trump administration, Iran’s sales of oil, the country’s key revenue earner, have been forced on to the grey market where a myriad of shell companies and third parties are used, as well as ship-to-ship transfers of product.
An oil pipeline that will allow Iran to ship oil exports without needing to send tankers through the Strait of Hormuz chokepoint is 60% complete and on schedule.
The 1,000-km-long pipeline will run from Goreh near the Persian Gulf port city
40​ IRAN Country Report December 2020 www.intellinews.com