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given the high costs and complexities of restarting production.
Data from Kayrros, a company which tracks oil flows, reportedly showed onshore storage in Iran was 46.1mn barrels, from a total capacity of 73mn barrels, the highest level recorded since mid January.
Reuters also cited data based on AIS tracking by shipping intelligence platform MarineTraffic. It showed 16 Iranian tankers, holding some 20mn barrels, appeared to have been deployed as floating storage. They had been stationary for between two to four weeks. Ten of those tankers with nearly 11mn barrels had been stationary for four weeks.
This compared with 12 Iranian tankers holding at least 13mn barrels in March, which had been stationary from two to four weeks.
If Iran wants to buy more tankers for storage purposes, it again faces the challenge of overcoming US sanctions.
“Apart from these vessels, of late there is indeed a rising trend of more Iranian tankers switching off their AIS trackers,” Svetlana Lobaciova, a senior market analyst with Gibson, was quoted as saying, adding: “However, at this stage we can not say with any degree of certainty whether these units are simply sitting empty or storing or continuing to trade.”
“Iran has been using storage facilities in China, and could also try using storage facilities in neighboring Oman for example. However, if the US targets such external storage options with sanctions, it will create serious problems and infuriate Iran,” Farzin Nadimi, an associate fellow with the Washington Institute for Near East Policy think-tank, was cited as saying.
9.1.2 Automotive sector news
Saeed Bastani, a member of Iran’s parliamentary commission on industries, mining and trade, has disclosed that the government plans to sell its stakes in automakers Iran Khodro (IKCO) and SAIPA, according to Iran Student News Agency.
The Rouhani administration announced at the beginning of its second term in 2017 that the government intended to sell off its 14% stake in largest Iranian automaker Iran Khodro and its 17% stake in the second largest, SAIPA. Since then both companies have been severely impacted by the heavy sanctions introduced against Iran by the US last year—foreign partners including PSA Group’s Peugeot and Citroen pulled out of Iran fearing secondary sanctions from Washington should they stay.
Bastani reportedly said: “Earlier last week, the government's economic commission decided to sell all government shares in car companies and some other state-owned corporations.”
Once the stake sales were completed, “the country’s automotive sector will be on the verge of a major transformation”, he added.
The path to full privatisation will take at least a year, but the reported clearance given by the important commission is a significant step forwards.
IKCO and SAIPA have been a drag on the government’s coffers since they were taken into state ownership following the 1979 revolution. A lack of investment and a reliance on foreign partners have left the companies producing cars designed in the 1980s, including the Kia Pride and Peugeot 405.
Bastani added that ministries were also gearing up to sell their stakes in six other companies including major Tehran football teams Persepolis and Esteghlal–the two biggest teams in Iran.
Auto production in Iran plunged 73.3% y/y in the 12 months to February
34 IRAN Country Report July 2019 www.intellinews.com