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NIOC, Repsol seal oil sale deal

Iran’s oil exports to Spain have climbed by three million barrels per month upon signing short-term contracts with Cepsa, Respol as well as BP oil industry companies

NIOC, Repsol seal oil sale deal
(Sunday, June 26, 2016) 08:13

The National Iranian Oil Company (NIOC) and Spain’s Repsol S.A. have inked an agreement to deploy a one-million-barrel shipment on a monthly basis turning Repsol into the second Spanish buyer of the Iranian crude after Cepsa.

The new contract, which follows an earlier one signed with Cepsa (Spanish Petroleum Company), had doubled Iran’s oil export volume to the European country.

In addition, NIOC has sealed a separate agreement with BP (British Petroleum) in the form of spot contracts to export a total of one million barrels per month.

Overall, given the signing of three contracts to sell oil to Cepsa and Repsol of Spain and well as BP, the volume of Iran’s crude exports has tripled as compared with the figure during sanction years.

Executive Director for International Affairs at National Iranian Oil Company (NIOC) Seyed Mohsen Ghamsari had earlier confirmed the talks with BP saying “in case of reaching an agreement, crude will be sold to BP in order to supply one of its refineries in South Africa or in other parts of the world.”

Deputy Oil Minister Roknodin Javadi had also noted that a separate round of talks has begun with the English company over oil sale resumption; “BP has so far expressed willingness to expand a number of Iran’s oil fields.”

On Iran’s new plans to construct refineries in foreign countries, Managing Director of National Iranian Oil Refining and Distribution Company (NIORDC) Abbas Kazemi had underlined "we have proposed to construct crude oil refineries within the framework of equal shares and partnership in Spain"; “NIORDC mainly undertakes the technical feasibility and economic justifiability of the project while NIOC remains as the key decision maker.”

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