Tehran, Iran, Dec.6
Trend:
The plan to offer oil via the Energy exchange in Iran has been discussed by the past governments, former chief of Securities and Exchange Organization and the chief executive officer of Export Development Bank of Iran Ali Salehabadi told Trend.
"It was offered once in the past, but it did not continue due to wrong mechanism," he explained.
"I am optimistic about selling oil via Energy Exchange, because the private sector can sell our oil in a better and more competitive environment and the government would move toward selling crude oil via the energy exchange,” he said.
"My assessment is positive and I think it’s possible that the traditional oil sale system gradually moves toward non-governmental and modern paths," he said.
"The oil officials should talk about the reasons for suspension of oil sale at the energy exchange but there are obstacles on the way, costumers should have paid a portion of payments in rial and the rest of it in US dollars. Whether buyers can provide the necessary assurance is an important issue, especially when the government is afraid to sell oil and the buyers do not pay their money," he said referring to the reason for stopping oil sales in Energy Exchange.
"I don't know why the sale stopped but there was a significant expert examination behind this and professionals have confirmed that oil offering via the exchange is in the interest of the country,” he said.
Referring to the confidentiality of the name of buyers he said that the names will remain confidential for now but the government`s base is transparency in selling oil, so it should reveal the names sooner or later.
The Iran Energy Exchange (IRENEX) is Iran’s old and alternative plan to monetize its oil. IRENEX was established in 2013 as a regulated exchange for trading of energy-related products and securities. For the last four years, it served as an exchange for trading petroleum and petrochemical products, excluding crude oil. Iranian authorities now use IRENEX to cater to their export potential.
The sale of physical crude for international buyers in the IRENEX is designed to “dodge” sanctions imposed by the U.S. earlier this month, which hopes to prohibit third-party countries from purchasing oil and being involved in energy, shipping and financing businesses with Iran.
The state-oil firm of Iran offered the crude at $65.22 a barrel, but sold for $64.94/Bbl, in the second public sale through the energy exchange. Details on buyers weren’t disclosed, as per previously announced rules of confidentiality.