250 private Iranian companies to export crude oil

Posted on August 3, 2012

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Some part of Iran’s crude will be exported by 250 private sector companies, head of Iranian Oil, Gas and Petrochemicals Exporters Union Hassan Khosrojerdi said, local newspaper “Iran” reported.

Iran plans to establish three consortiums with participation of domestic private companies to evade the Western countries’ sanctions over Iran’s oil export.

Khosrojerdi said the first consortium includes 65 private sector companies that will be selling Iran’s crude abroad.

Iran exported 2,537 bpd of crude oil in 2011. In 2010 the country exported 2,583 bpd of crude, and 2,406 bpd in 2009, according to OPEC. In 2007 Iran’s crude exports were the highest for the past 5 years, standing at 2,639 bpd.

Iranian Parliament has approved a bill allowing private sector to involve in oil export in April, permitting this sector to sell 20 percent of the country’s total crude oil exports, which is about 400,000 bpd.

On the other hand, on July 8 Oil Ministry and Central Bank have agreed to transfer the exports of some 500,000 barrels of crude oil per day to the private sector in order to circumvent the sanctions.

Khosrojerdi said that two more consortiums will be created, also consisting of Iran’s private exporters.

Speaking of the time when private companies of Iran will begin selling crude, Khosrojerdi said that it is estimated that the sales will begin in the second half of the year (begins on 21 March).

There is an agreement in existence between Iranian oil ministry and the Iranian Oil Exporters Union that if the oil ministry sells oil to one source, the private sector does not interfere, and continues its business with other clients.

The European Union’s oil embargo on Iran came into force on July 1 and a new U.S. law penalizing countries that do business with the Central Bank of Iran by denying their banks’ access to the U.S. market came into force on June 28.

According to the reports, Iran’s oil export has been reduced from 2.3 mbpd to 1.2 mbpd since 2011.

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