International
Iran offers South Pars condensate on domestic bourse despite lack of buyer interest
Iran offered 1 million barrels of gas condensates for sale on its domestic energy exchange on Wednesday, state television reported.
The barrels on offer came from the South Pars natural gas field and can be purchased in 35,000-barrel consignments, Ali Hosseini, managing director of Iran’s energy bourse, was quoted as saying.
The bourse is designed to help buyers purchase Iranian oil without running afoul of US sanctions on Iran, but interest has been tepid.
Hosseini said that 80% of each condensate transaction’s settlement will be in foreign currency and under a credit mechanism, but the remaining 20%, in the national currency rial, should mostly be paid in cash. Customers must make a 6% pre-payment two hours before each offer starts, he said. The price for the barrels offered was not mentioned.
As for crude sales on the bourse, Hosseini said National Iranian Oil Company will offer crude every two weeks, despite a relative lack of buyers.
The energy market has made four offers since last year, but reported no purchases in the last two rounds.
“Having coordinated with National Iranian Oil Company, oil offers will be carried out every other week,” Hosseini said. “Thus, both purchasers and brokers networks adjust their conditions with the National Iranian Oil Company’s offer terms.”
NIOC has released a statement saying the next, fifth offer will be on Monday, February 18.
The base price for the upcoming offer will be $56.81/b. The 35,000-barrel cargoes will be a minimum per purchase with a 90-day settlement deadline after loading. As an incentive, buyers can use the national currency for the whole payment.
Buyers of Iranian oil in the energy market remain anonymous. Iranian officials say they are neither foreign buyers, nor local oil refineries.
“Purchasers ask for high confidentiality,” Hosseini noted, adding that the strict confidentiality in the market applies to all commodities offered on the exchange.
