• 1 hour This Country Produces 39% Of The World’s Uranium
  • 2 hours Australia Can Achieve A Zero-Carbon Gas Grid By 2050
  • 4 hours Is A Russia-Cuba Energy Deal In The Works?
  • 3 days Iraq Begins To Rebuild Largest Refinery
  • 3 days Canadian Producers Struggle To Find Transport Oil Cargo
  • 3 days Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 3 days China's CNPC Considers Taking Over South Pars Gas Field
  • 3 days BP To Invest $200 Million In Solar
  • 3 days Tesla Opens New Showroom In NYC
  • 3 days Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 3 days Venezuela Sells Oil Refinery Stake To Cuba
  • 3 days Tesla Is “Headed For A Brick Wall”
  • 4 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 4 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 4 days Goldman Bullish On Oil Markets
  • 4 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 4 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 4 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 4 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 4 days Colombia Boosts Oil & Gas Investment
  • 5 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 5 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 5 days Aramco On The Hunt For IPO Global Coordinators
  • 5 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 5 days India Feels the Pinch As Oil Prices Rise
  • 5 days Aramco Announces $40 Billion Investment Program
  • 5 days Top Insurer Axa To Exit Oil Sands
  • 6 days API Reports Huge Crude Draw
  • 6 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 6 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 6 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 6 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 6 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 6 days Exxon To Start Reporting On Climate Change Effect
  • 7 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 7 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 7 days Forties Pipeline Could Remain Shuttered For Weeks
  • 7 days Desjardins Ends Energy Loan Moratorium
  • 7 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 7 days Russia May Turn To Cryptocurrencies For Oil Trade
Tread Lightly In December’s Energy Markets

Tread Lightly In December’s Energy Markets

As energy markets fall into…

The Five Mining Companies To Watch In 2018

The Five Mining Companies To Watch In 2018

The future of mining has…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Iran Scores Again with Insurance Coverage On Oil Cargoes

Oil flaring Iran

International insurance companies have found a way around U.S. sanctions on Iran still in place and will now offer almost complete cover on outgoing crude oil shipments, Reuters writes in an exclusive report.

The service provision should start on February 20, after the companies, members of the International Group of P&I Clubs, hammered out the details of insurance and re-insurance coverage of the cargoes without the involvement of U.S. insurers and re-insurers.

After last year’s lifting of most sanctions against Iran, a group of 13 insurers agreed to provide coverage of up to US$830 million per tanker of Iranian oil, by devising something called “fall-back” insurance. This, however, is unusually low coverage for crude oil carriers, which deterred some shippers, preventing Iran from fully exploiting its oil riches.

Under the new arrangement, maximum coverage will be US$3.08 billion, with compensation of up to US$7.8 billion for events such as oil spills and other accidents, to be paid by shipping companies using the services of the International Group of P&I Clubs.

How long this arrangement will last depends on the priorities of U.S. President-elect Donald Trump, who has been vocal in his opposition to the deal that Western powers struck with Tehran in a bid to curb its nuclear program in exchange for lifting most sanctions.

Related: The Rebound Is Here: Megaprojects Back On The Table

Meanwhile, Iran exported an average of 2.57 million barrels of oil daily in the period between March and December 2016, with the December daily average rising to 2.83 million bpd, according to information from the Oil Ministry. To compare, before the sanctions, Iran exported 3 million bpd, which means even without full insurance coverage the country is returning to pre-sanction levels.

Revenue from oil and gas condensate exports should reach US$41 billion for the fiscal year ending in March 2017, Oil Minister Bijan Zanganeh said yesterday, with US$29 billion worth of oil and condensate shipped abroad in the first nine months of the fiscal year.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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