Iran Energy Exchange announced Sunday that the plan to offer parallel salaf contracts to be backed by crude oil exports has been postponed.
In a notice on its website, it’s public relation office said the new timeframe for offering salaf contracts will be announced by the National Iranian Oil Company.
NIOC announced last week that it would offer standard parallel salaf contracts for 520,000 barrels of heavy crude oil via IRENEX on August 18.
Standard parallel salaf is an Islamic contract similar to futures, with the difference being that the total price should be paid in advance. The offer is aimed at raising funds for development projects and NIOC operational costs.
NIOC priced heavy crude oil at 9.446 million rials (about $42). Those interested could buy the contracts for minimum one barrel and maximum 20,000 barrels. The contract’s yield was 19% with August 2022 maturity.
IRENEX did not provide details nor say why the NIOC had postponed the offer. However, there are reports in the local media that opposition to a similar plan announced by President Hassan Rouhani might be the case.
Rouhani recently announced that the outlines of the crude oil presale scheme was approved by the Supreme Council of Economic Coordination, the ad hoc economic decision-making body comprising the heads of three branches of government.
At that time, however, it was said that this subject to in-depth study by economic and financial experts.
Citing lawmakers, the semi-official Fars News Agency and other news websites said Sunday Parliament Speaker Mohammad Baqer Qalibaf and the judiciary chief Ebrahim Raeisi in a letter to the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei have expressed opposition to Rouhani’s oil presale plan.
“Lawmakers take issue with the government decision… They say selling oil-based salaf contracts will add to the problems of the country,” MP Abolfazl Abootorabi told the news agency.
As per the president’s plan, the government intends to presale 220 million barrels of oil to the people in one year using Islamic parallel salaf contracts. Reimbursement would be backed by the government’s future oil export after the US embargo on oil export is lifted.
In defense of the plan, Rouhani had said the oil sale initiative is designed to “control the money supply and direct it toward the production sector”.
