Page 32 - IRANRptJun18

9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
India’s Reliance Industries, owner of the world’s biggest refining complex, is planning to halt oil imports from Iran, two sources familiar with the matter were reported as saying by Reuters on May 30. The move is an early sign that heavy new US sanctions to be introduced in the wake of Washington’s unilateral withdrawal from the Iran nuclear deal are forcing buyers to drop future oil purchases from Tehran. Although New Delhi has pledged that it will only abide by UN sanctions, and not US measures, it has left it open to Indian companies exposed to the US financial system to decide for themselves how to deal with the issue of continuing to do business with the Iranians or not. China and India are by far the biggest buyers of Iranian oil, at around 700,000 and 550,000 barrels per day, and they have shown no sign of being willing to turn away shipments at the behest of Washington . Meanwhile, Reuters has also reported that Iran has reportedly requested that OPEC support it against the new US sanctions. Its report added Tehran may not be in agreement with the statement of Russia and Saudi Arabia that they were prepared to ease oil output cuts to calm consumer worries about supply.
Iran’s crude oil exports moderately declined in May, estimates from tanker-tracking company Petro Logistics show, Reuters reported on May 30. It may be an initial sign that impending US sanctions are deterring buyers. “Exports are down by more than 100,000 barrels per day (bpd) from the very high levels seen in April, but there is no sign of a mass exodus at this time,” Daniel Gerber, chief executive of Petro-Logistics, reportedly told the news agency. Iran said it exported 2.6mn bpd in April, a record since the lifting of international sanctions on Tehran in January 2016. Whether the nuclear deal stands or falls after efforts made at salvaging it by its remaining signatories, Iran will look to preserve as much of its economically essential oil exports as possible. Around 37% of Iran’s oil exports go to European destinations. Iran is calling on the EU to protect the trade.
Iran was late on May 16 set to sign a $1.16bn agreement with the UK’s Pergas Resources International to work on a southern oil field.
Earlier in the day, the Iranians received t he disappointing news that French energy major Total is to pull out of the multi-billion-dollar project to develop Phase 11 of the giant South Pars gas field i n the Persian Gulf unless sanctions waivers can be arranged with Washington. The announced energy venture with Pergas, the first such deal since Donald Trump withdrew the US from the nuclear deal on May 8, thus came as a small consolation. Whether Pergas will push ahead with the deal may depend on whether the EU can find a way to shield from US sanctions European companies that continue to trade with or invest in Iran. London-based Pergas and the state-run National Iranian South Oil Co. were poised to sign a “heads of agreement” to develop Karanj oil field in Khuzestan province, the latter company said. A Tehran ceremony with the attendance of Oil Minister Bijan Namdar Zanganeh was planned, it added.
32 IRAN Country Report June 2018 www.intellinews.com