Minister: Instructions for offering oil at IRENEX aim at monetary transparency

Oil&Gas Materials 27 May 2019 17:07 (UTC +04:00)

Baku, Azerbaijan, May 27

By Elnur Baghishov - Trend:

Preparation of instructions for offering oil at Iran Energy Exchange (IRENEX) is aimed at improving monetary transparency, Iranian Oil minister Bijan Zanganeh said, Trend reports with reference to the website of the Iranian parliament.

He said that in line with the instructions, customers already know what kind of payment they will make when making price offers.

He noted that there has been no instruction on the sale of oil and gas condensate at the energy exchange so far.

He also added that the instruction covers such issues as setting prices and creating balance in prices.

“That’s because it may take up to 2-3 months for the product to be delivered from the exchange to customer,” he said. “Therefore, it should have been defined how the prices would be adjusted so that neither of the parties incur losses.”

In accordance with the new instruction for the sale of oil and gas condensate at the energy stock exchange in Iran, at least 2 million barrels of light oil, 2 million barrels of heavy oil and 2 million cubic meters of gas condensate should be offered for sale per month.

Heavy and light crude oil were put up for sale several times at the energy exchange of the National Iranian Oil Company. So far, 1.015 million barrels of light oil and 70,000 barrels of heavy oil have been sold at the energy exchange.