• 5 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 10 minutes Iranian Sanctions - What Are The Facts?
  • 15 minutes U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 2 hours Censorship has a price: Google’s CEO Defends Potential Return to China
  • 4 hours Gold price on a rise...
  • 3 mins Judge Approves SEC Settlement With Tesla, Musk
  • 3 hours Two Koreas: U.N. Command Wrap Up First Talks On Disarming Border
  • 4 mins Saudis Threaten Retaliation If Sanctions are Imposed
  • 1 hour Can the World Survive without Saudi Oil?
  • 2 hours $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 5 hours Who's Ready For The Next Contest?
  • 6 hours WTI @ $75.75, headed for $64 - 67
  • 1 hour Mexico State Oil
  • 55 mins Saudi Crown Prince to Trump: We've Replaced All Iran's Lost Oil
  • 1 hour Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 1 hour UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
Are Oil Majors Returning To Libya?

Are Oil Majors Returning To Libya?

Libya’s NOC has managed to…

Sanctions Enable Iranian Shipping Company to Expand Fleet Capacity by 23%

Due to the ever growing net of sanctions placed on Iran and its oil and gas industry by the EU and US, over the continuing dispute concerning Iran’s suspect nuclear program, exports have fallen. According to the International Trade Centre, in 2012 oil exports fell by 48% to 66 million metric tonnes, reducing the vital revenue earned by 38% to $52.7 billion.

In July 2012 the EU introduced the sanctions that prevented tankers that transported Iranian crude oil from gaining insurance protection from any European broker. As nearly all ships in the world are insured by brokers from London and the rest of Europe, this left Iran with a serious problem.

NITC, the country’s largest tanker company has taken up as much of the slack as it can and has expanded massively as a result; recently taking delivery of seven new vessels that have boosted its fleet capacity by 23%, according to HIS Maritime data.

Related article: Iran-Iraq-Syria Pipeline Must Tempt Europe

The seven new tankers are all very large crude carriers, able to transport 2 million barrels of oil each, and increasing NITC’s fleet size to a total of 37 supertankers with an overall capacity of 86 million barrels of oil.

A very large crude carrier owned by NITC
A very large crude carrier owned by NITC. (PressTV)

Related article: Internet Report Says Syria has Largest Oil and Gas Fields

Clarksons, the integrated shipping service provider, said that three of the new tankers were built at the Waigaoqiao shipyard in Shanghai, whilst the remaining four were built in Dailan. In all 12 supertankers were ordered back in 2009 for a total contract price of $1.2 billion.

Nigel Prentis, the head of consultancy at Hartland Shipping Services Ltd., explained to Bloomberg that “any addition of new tonnage gives NITC the ability to deliver more crude direct to their customers on their own ships, avoiding insurance difficulties. It also allows them to store more crude at sea.”

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