Iran plans to store 14 million tons of crude oil in China

Oil&Gas Materials 7 December 2013 16:02 (UTC +04:00)

Baku, Azerbaijan, Dec.7
By Fatih Karimov - Trend:

The Iranian Oil Ministry plans to store 14 million tons of crude oil in China as a means to deal with limitations for selling crude oil in the international market, IRNA reported on December 7.

Moreover, the Oil Ministry plans to export crude oil via Iraq and establish floating terminal in Oman waters.

These were the most important measures of the Oil Ministry during the first 100 days of the administration of President Hassan Rouhani, according to the report.

The Oil Ministry has also been negotiating to export crude oil to Russia, the report further said.

Iran wants other OPEC members to make room for its eventual return to oil markets after the Persian Gulf nation reached an interim deal with world powers over its nuclear program, Reuters reported on Wednesday.

The Islamic republic reached a preliminary agreement with the so-called P5+1 nations - the U.S., the UK, China, Russia, France and Germany - last month in Geneva that eased some trade sanctions while reining in its nuclear program. That accord didn't relax sanctions that prevent U.S. and European nations from importing Iran's oil and compels Iran's other customers to restrict purchases.

Iran could boost production to 4 million barrels a day next year if sanctions are lifted, Iran's Oil Minister Bijan Zanganeh has said. The nation is currently exporting about 1.2 million barrels a day and has earmarked 1.5 million barrels of daily sales in its budget, which includes 300,000 barrels of condensates.

Output of condensate, a lighter type of oil, will increase to 1 million barrels a day from 300,000 currently over the next ½ - 2 years, Zanganeh said.

Discussions with international oil companies on exploration terms and conditions will also take place in Tehran and London in early 2014, he said, without specifying which may be involved. For now, laws forbid U.S. and European companies from striking energy deals with Iran and other nations risk being excluded from the U.S. banking system if they violate sanctions.

"Iran is preparing for a complete return to the market," Zanganeh said.