• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 17 mins Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 1 hour Struggle For Supremacy: Kremlin Condemns Alleged U.S. Ultimatum To Turkey Over Missile Deal
  • 6 hours Solar Cheaper than Coal
  • 3 mins Why is Strait of Hormuz the World's Most Important Oil Artery
  • 15 mins CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 1 hour Apple Bid To Buy Tesla in 2013 For $240 a Share
  • 32 mins Another surprise 'build'
  • 14 mins California's Oil Industry Collapses Despite Shale Boom
  • 9 hours Global Warming Making The Rich Richer
  • 8 hours Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 3 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 14 hours North Dakota oil output totals 1.39 million b/d in March, up 4% on month: state
  • 7 hours Crude oil?
  • 12 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
Can The U.S. Steal Gas Market Share From Russia?

Can The U.S. Steal Gas Market Share From Russia?

Though Russia has historically maintained…

Vitol Loans US$1B To Iran In Exchange For Future Oil Exports

Vitol Group

Commodity trader Vitol has agreed to provide the National Iranian Oil Company with the euro equivalent of US$1 billion in exchange for a share in future oil product exports from Iran.

The news was unveiled by sources close to the deal, cited by news wires, but remained unconfirmed by either party officially.

The deal comes on the heels of an announcement from Tehran that it had selected 29 foreign companies to bid in forthcoming oil and gas tenders, further highlighting Iran’s determination to get is energy industry back on track after the removal of most Western sanctions last January and, possibly, before U.S. President-elect Donald Trump gets into a position to do effect a reversal of some sort.

As Reuters notes, Vitol, unlike most big oil companies from the Western part of the world, is a private enterprise, which gives it much more flexibility in closing deals with Iran. Much more than, say, BP, whose CEO Bob Dudley is a U.S. citizen and as such unwilling to risk re-entering Iran, which still has some sanctions from the U.S. in place.

The pre-finance nature of the deal is becoming increasingly common among commodity traders, as it provides them with long-term access to substantial amounts of oil and fuels, Reuters also notes, and their partners benefit from the upfront cash.

Late last year, Vitol sealed another pre-finance deal, this time with Kuwait Energy, which will see the world’s top commodity trader provide the Kuwaiti company with US$100 million in exchange of crude oil, to be drawn from Kuwait Energy’s operations in Iraq. Most of the money that Vitol will provide, will be spent on expanding those same Iraqi operations, Kuwait Energy said. The remainder will go towards developing Kuwait Energy’s Egyptian business.

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