Page 53 - IRANRptOct19

tackle that particular dilemma. On the other hand, during winter months when Iran needs less electricity, it might contribute power flows to the network.
9.2 ​Major corporate news 9.2.1​ Oil & gas corporate news
Iran sells products on IRENEX
South Pars oil layer to be developed by Iranian firm
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 petroleum 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 Ministry of Petroleum (MoP) cut the minimum purchase 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 trading 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 payment 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 barrels 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: “Majlis 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 Products 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.
With Tehran struggling to attract foreign operators, the National Iranian Oil Co. (NIOC) has announced that it will award the development contract for the South Pars oil layer to a domestic firm.
53​ IRAN Country Report​ October 2019 www.intellinews.com