• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 1 day The Discount Airline Model Is Coming for Europe’s Railways
  • 12 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 7 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 21 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 30 mins Starvation, horror in Venezuela
  • 8 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Venezuela set to raise gasoline prices to international levels.
  • 20 hours Are Trump's steel tariffs working? Seems they are!
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 1 hour Why hydrogen economics does not work
  • 1 day Corporations Are Buying More Renewables Than Ever
  • 22 mins China goes against US natural gas
How To Trade The Turkish Crisis

How To Trade The Turkish Crisis

A run on the Turkish…

Keystone XL Delayed…Again

Keystone XL Delayed…Again

The Keystone XL saga has…

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