Producing and selling petroleum products is the way to combat US sanctions

Oil&Gas Materials 24 April 2019 15:27 (UTC +04:00)

Tehran, Iran, April.23


A member of Iranian Oil, Gas and Petrochemical Products Exports' Association said the way to solve problems associated with the US sanctions is to allocate petrochemical feedstock and funds to production units.

"under these sanctions, other countries may supply oil to the potential purchasers of Iranian oil, and this is not in our interests,” a member of the Association Vahid Sheikhi told Trend.

“Therefore, our solution is to increase the production of petroleum products to sell products to neighboring countries, because these oil products are not covered by the sanctions,” he added.

“Iran has high capability to produce gas and oil products and there is a huge potential in gas condensate and other solvents production,” Vahid Sheikhi said. “If we allocate the petrochemical feed’s quota for production units, the existing facilities can be effectively used for this purpose.”

He continued by saying, “If sufficient funds are provided to the production sector, we will be able to increase the export. Within six months, we will export most of the condensate and refined products blocked in refineries.”

On April 22, the Trump administration announced that it will not extend sanctions waivers to a handful of countries that import Iranian oil. The decision means that any entity caught in purchasing Iran’s oil after May 1 risks triggering U.S. sanctions, which are designed to deprive the Iranian leadership of oil revenue.