• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 32 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 14 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 18 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 13 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 22 hours Middle East on brink: Oil tankers attacked off Oman
  • 16 hours Never Knew Gasoline Prices were this important!
  • 15 hours (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 14 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 1 day Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 4 hours Plants are Dying
  • 11 hours We Are Better Than This
  • 1 day Emmissions up, renewables nowhere
  • 1 day Middle East Attack Jolts Oil-Import Dependent Asia
Alt Text

How Oil Defeated The Nazis

The role of crude oil…

Alt Text

U.S. Gulf Coast Oil Imports Hit 33-Year Low

The U.S. Gulf Coast saw…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Trending Discussions

Sri Lanka Looks To Pay For Iranian Crude With Tea

Sri Lanka will pay down its oil debt held by Iran with tea in response to new regulations that Sri Lanka has issued in order to comply with a UN Security Council Resolution.

The UN resolution calls for the imposition of sanctions on Iran for failing to stop its uranium enrichment program, and restricts financial transactions with Iran. In response to these restrictions, Sri Lanka is hoping to pay Iran in tea—a year’s worth of it.

Sri Lanka’s Ceylon Petroleum Corporation (CPC), Sri Lanka’s state-owned oil and gas company, owes Iran about $250 million for oil shipments in recent months. But restrictions on payments limits CPC’s options on how to pay for the oil. The Sri Lanka Tea Board proposed a solution: compensate Iran with tea instead of dollars.

The proposal would have the CPC pay for the tea, then the tea would be shipped to Iran.

“If the CPC pays us, we can continue the export of tea to Iran as there is no ban on this commodity. The amount the CPC owes Iran can offset payment for a year of tea export to Iran,” Tea Board Chairman Lucille Wijewardena said, adding that there would be more discussions on the subject in the coming week. Related: IEA: World Is Not Spending Enough On Energy

Sri Lanka has long relied on Iran’s participation in various energy projects, including upgrading oil refineries, as well as chipping in on hydroelectric projects and rural electrification projects.

Iran agreed in May to build a new refinery for Sri Lanka, on top of upgrading an existing state-run oil refinery that Iran had built for Sri Lanka in 1969—a refinery built specifically to refine Iranian light crude. But in the wake of the first round of US sanctions on Iran, Sri Lanka was forced to look for other suppliers.

Iran is the fourth largest market for Sri Lankan Ceylon tea, accounting for 9.5% of its total exports.

While payments in tea may be a technically acceptable method of skirting UN sanctions, the $250 million that’s owed is for a couple of months’ worth of oil, whereas it would take a year’s worth of tea to compensate. It is unclear how future oil shipments to Sri Lanka will be paid for.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News