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Iran prepares to export new oil grade amid sanctions threat: sources

Bahrain discovers largest oil field since 1932

Iran is readying the first commercial exports of its West Karoun crude oil grade for May or June, two sources familiar with the matter said, even as fresh economic sanctions against the country loom.

Iran has already been shipping samples of the grade to customers since production from the West Karoun oilfields in southwest Iran nearly doubled in the past year to 300,000 barrels per day (bpd), the sources said. A new export facility allows West Karoun to be shipped directly rather than blended with other grades.

“Initial cargoes of West Karoun will be sold on a spot basis as the quality of the crude is yet to be established.” said one of the two sources.

This means that buyers have no obligation to take regular amounts of the crude as they do under the long-term off-take agreements that are typical for Middle East oil sales.

Citing this Reuters report, experts, who spoke to The Baghdad Post, said that Iran uses such resources to fund its militias, which spread terror in Syria, Iraq, Lebanon and Yemen."Sanctions should be tightened on Iran as they use the assets released after inking the nuclear deal to foment terror." 

Last Modified: Tuesday، 08 May 2018 01:27 PM