Iran to put up oil & gas condensate for sale in new format
BAKU, Azerbaijan, Dec. 18
By Elnur Baghishov - Trend:
In accordance with the instructions by Iranian Oil Minister Bijan Zangeneh, oil and gas condensate will be put up for sale at the Iran Energy Exchange (IRENEX) in a new format, representative of the National Iranian Oil Company (NIOC) at IRENEX Amirhossein Tebianian said, Trend reports referring to the NIOC website.
Tebianian noted that according to the new instructions, the initial price of gas condensate will be $6 less than at the price at Dubai Mercantile Exchange Limited (DME), the initial price of light crude oil will be $7 less than Brent crude oil, and the initial price of heavy crude oil will be $8.5 less than Brent crude oil and will be provided free-on-board (FOB).
Tebianian added that in this format, the maximum discount is provided in the initial price.
The company official said that the information and documents of a customer that will buy oil and gas condensate at the IRENEX will be sent to NIOC.
Tebianian added that after the initial payment, the customer company will sign an agreement on financial and other transactions, such as those concerning product loading and payment.
“This change will give the client freedom,” the company official noted. “After the initial payment, the final agreement on the details will be reached through direct discussion.”
According to the budget law of this Iranian year (began March 21, 2019), the Iranian Ministry of Petroleum had to put up for sale at least 6 million barrels of crude oil and gas condensate a month. According to this law, hydrocarbons have been put up for sale from the second month to the seventh month (April 21 - September 23).
Oil and gas condensate started to be put up for sale at the IRENEX since last October. So far, slightly over 1 million barrels of light crude oil, 70,000 barrels of heavy crude oil and no gas condensate have been sold at the IRENEX.
Various opportunities for the sale of oil and gas condensate are provided at the IRENEX, including reduction of the first payment from 10 percent to 6 percent, and deadline for the full payment after the product is shipped is expected to be increased from 50 days to 60 days.