• 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 2 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 2 days Venezuela Officially In Default
  • 2 days Iran Prepares To Export LNG To Boost Trade Relations
  • 2 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 2 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 3 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 3 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 3 days Santos Admits It Rejected $7.2B Takeover Bid
  • 3 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 4 days Russian Hackers Target British Energy Industry
  • 4 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 4 days Lower Oil Prices Benefit European Refiners
  • 4 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 5 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 5 days OPEC To Recruit New Members To Fight Market Imbalance
  • 5 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 5 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 6 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 6 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 6 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 9 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Tesla’ E-Truck Is A Big Thing For Energy Markets

Tesla’ E-Truck Is A Big Thing For Energy Markets

While skeptics have raised eyebrows…

5 Of The Hottest Mining Stocks For 2018

5 Of The Hottest Mining Stocks For 2018

The electric car boom has…

India Looks to Begin Making Oil Payments to Iran after Deal

India Looks to Begin Making Oil Payments to Iran after Deal

On Sunday, a new deal was made with Iran in which world powers agreed to ease some of the sanctions against Tehran in exchange for a reduction in stockpiles of enriched uranium and more transparency at nuclear facilities, amongst other things.

Iran’s economy has suffered greatly at the hands of the sanctions, losing an estimated $80 billion in oil sales since 2012, but the recent deal allows Iran to receive about $4.2 billion in money held in foreign accounts, based on the fact that it complies with its side of the bargain. India, which owes Tehran about $5.3 billion for unpaid oil shipments is now looking for a means to begin paying this debt back as early as next week.

Related article: The Iranian Nuclear Deal and Its Effect on Oil Markets

India is Iran’s second largest customer after China, and whilst the sanctions have been in effect to prevent foreign banks from interacting with Iranian banks, Iran has been unable to receive any money for the oil shipments it has been making.

In February the US told Iranian oil customers to stop transferring any payments to Tehran and instead keep the money in domestic bank accounts in their own currency.

Countries around the world are holding bank accounts full of money owed to Tehran, and once this cash starts to flow back to Iran, the country’s economy will be given some much needed relief. Banks in South Korea and Japan are also waiting to see how much money they will be able to deliver to Iran, and when.

Before the February blockade on financial transactions, India was making its payments via the Turkish state-run bank, Halbank, and may well resume with this route once again. In October, the National Iranian Oil Company asked its Indian customers to begin making some payments in euros via Halbank as soon as possible.

Related article: Are you Listening to the Pundits or the Markets?

P.P. Upadhya, the managing director of Mangalore Refinery and Petrochemicals Ltd, told Reuters that “next week if it is possible, we will start making our payments.”

Also included as part of the deal between Iran and the P5+1 (UK, US, Russia, China, and France, plus Germany) is a lift on the restrictions preventing Iranian ships to find insurance. This will allow more shipments from Iran, enabling HPCL, an Indian refiner, to import and extra 50,000 barrels of oil a day, about 25% more than it was able to import during the first three quarters of 2013.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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