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Differences between Iran, Shell over crude deal seem to grow

Business Materials 24 May 2016 11:59 (UTC +04:00)

Baku, Azerbaijan, May 24

By Khalid Kazimov - Trend:

Oil giant Shell is likely to ship a part of oil purchased from Iran to South Africa and Germany, an Iranian oil official said.

Seyyed Mohsen Qamsari, the deputy managing director of the National Iranian Oil Company (NIOC) for international affairs, said that there are some differences between the NIOC and Shell over the volume of oil expected to be traded between the companies, Mehr news agency reported.

Saying that, so far, no agreement on oil purchase has been inked between the sides, the official added that the existing differences are not big. He added that talks are underway between the NIOC and the UK-based oil giant over oil purchase.

Shell, along with its European peers, has already showed interest to return to the Iranian oil and gas projects following the removal of nuclear related sanctions against Tehran.

Shell was involved in developing a couple of major oil and gas projects in the Islamic Republic but the oil giant left Iran following the sanctions imposed on the Islamic Republic.

Iran's oil production stood at 3.03 million barrels per day (b\d) during the first quarter of 2016, showing 230,000 b/d increase in comparison to 2015, the US Energy Information Administration (EIA) said in a report published May 10.

The country plans to increase its daily output to four million barrels by March 2017.

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