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A general view shows a unit of South Pars Gas field in Asalouyeh Seaport, north of Persian Gulf, Iran November 19, 2015. REUTERS/Raheb Homavandi/TIMA


Iran’s Crude Oil Sales to Europe Surpass 300,000 Barrels after Sanctions

by | Feb 6, 2016 | World |

Iran’s Crude Oil Sales to Europe Surpass 300,000 Barrels after Sanctions
A general view shows a unit of South Pars Gas field in Asalouyeh Seaport, north of Persian Gulf, Iran November 19, 2015. REUTERS/Raheb Homavandi/TIMA

A general view shows a unit of South Pars Gas field in Asalouyeh Seaport, north of Persian Gulf, Iran November 19, 2015. REUTERS/Raheb Homavandi/TIMA

After lifting the international sanctions on Iran, its crude oil sales to Europe reached above 300,000 barrels, Iranian Oil Minister Bijan Zanganeh said on Saturday.

Iran’s oil exports used to record a high of more than 3 million barrels per day (bpd) in 2011; however, the tougher sanctions imposed on Iran in 2012 because of its nuclear program, lead to a fall to a little more than 1 million bpd.

After the rubber-stamping of the nuclear deal with world powers last year, however, Tehran has ordered a 500,000 bpd increase in oil output.

“Based on the contract signed between the National Iranian Oil Co and France’s Total, it was agreed that Total will buy 160,000 bpd of crude oil from Iran to be delivered in Europe,” Zanganeh was quoted as saying by news agency SHANA. The contract would be finalized on Feb 16, he added.

Furthermore, Zanganeh also said Italy’s Eni was interested in buying 100,000 barrels of crude oil from Iran and its representatives would visit Tehran in near future to discuss the contract.

“Eni has voiced its interest in one of Iran’s fields which will be treated like the agreement reached with Total,” he said.

Iran’s oil minister said Italian refiner Saras was intent to buy 60,000 to 70,000 barrels of crude oil from Iran.

Tehran is working on attracting foreign investors that have been frightened by sanctions and low by mitigating the terms it offers on oil development contracts. Tehran and its pragmatic president are putting in efforts to deliver the promise of economic recovery.

The new contracts, comprising those in the upstream exploration and development sectors are expected to attract more than $40 billion in foreign investment.

Iran has put off a planned oil conference in London, which was due to have taken place in February to reveal its new contracts, until November. An Iranian official said “the U.S. urged Tehran to hold off” until a final nuclear deal was reached.