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MEOG TRADING MEOG

Iran offering crude, gas

and condensate on IRENEX

IRAN IRANIAN Oil Minister Javad Owji said at the response to the US ramping up pressure on Ira-
weekend that crude oil and gas condensates nian oil customers to reduce shipments, with oil
would be sold to foreign customers on the Iran products joining the slate in recent months. It
Energy Exchange (IRENEX). has held offerings of light and heavy crude on
He said they would be available to domes- IRENEX since October 28, 2018 as it tries to
tic buyers at the same price during a particular provide a variety of sales mechanisms to appeal
period and expressed optimism that neighbour- to buyers.
ing countries would be interested in purchasing In an effort to entice more buyers, the Minis-
certificates of deposit (CDs). try of Petroleum (MoP) cut the minimum pur-
During the unveiling of the crude oil and gas chase order from 35,000 barrels to 1,000 barrels
condensate CDs, the minister stated that the for land delivery, while the clearance period for
plan, which aims to encourage domestic inves- payments extended from 60 days to 90. Inter-
tors and the general public to help sell oil, had ested parties have to pay 6% of their order value
been studied for over a year. in local or foreign currency two hours before
Owji revealed that IRENEX would offer trading begins.
72mn barrels of crude oil and gas condensates The MoP specified that cargoes could either
annually through the issuance of CDs. be delivered by sea at the Kharg Island terminal
The minister emphasised that CDs help or by land at the Tabriz Refinery.
to diversify and increase the transparency of The amendments to the purchase and pay-
exports. He said that the National Iranian Oil ment terms are nothing new. An amendment to
Co. (NIOC) had worked with the country’s the Iranian budget was approved on February
economic sector for 16 months to examine the 17, 2019, requiring the MoP to offer 2mn barrels
newly unveiled transactions and accomplish the per month of light crude on IRENEX. This came
plan’s objectives. in addition to the 2mn barrels of heavy crude oil
The minister commended NIOC managing and 2mn barrels of natural gas condensates and
director Mohsen Khojastehmehr for initiating natural gas the ministry was already obliged to
the plan of transacting crude oil and gas con- supply to the exchange.
densates through CDs. However, in the first few months following
Tehran began experimenting with selling that announcement, a total of just 1.1mn barrels
crude over the exchange in 2018 and 2019 in of crude was sold over the exchange.™

P10 www. NEWSBASE .com Week 11 15•March•2023