Final Negotiations With P&I Clubs

Final Negotiations  With P&I ClubsFinal Negotiations  With P&I Clubs

Iran is holding negotiations with the International Group of Protection & Indemnity Clubs in a meeting in Dubai, the UAE, to ease the transportation of crude oil it sells to customers worldwide.

“Representatives of National Iranian Tanker Company are in Dubai to meet the 13 insurance groups of the club and conclude a final agreement,” Amir-Hossein Zamaninia, deputy oil minister for international affairs, was quoted as saying by Shana.

Earlier, Seyyed Mohsen Qamsari, deputy for international affairs at the state-run National Iranian Oil Company, stressed that nine members of the 13-member group have agreed to cover the insurance risk of Iranian tankers.

The organization protects more than 90% of the world’s crude carriers against risks, which include spills.

Iran has been using Kish P&I, backed in part by the government, for shipping insurance.

"Of the 13 groups, 12 are European and Asian companies and one is an American insurance group," Zamaninia said.

“The American group has a great influence [on other members] and can distribute the risk of insurance coverage.”

The deputy minister noted that as several Iranian oil cargos have until now been delivered to target destinations, insurance constraints seem to be almost alleviated and only legal issues need to be cleared.

NITC’s Executive Director Ali Akbar Safaei also said last week that Iran is still facing hurdles to provide maritime insurance for its tanker fleet, but the difficulties are "almost settled" on the back of months-long efforts of National Iranian Tanker Company and the Foreign Ministry.

"Under a strategic post-sanctions plan, NITC has been in extensive negotiations with P&I Clubs since a long ago to resume operations of its tankers in Europe," Safaei said.

The country has the world's largest fleet of very large crude tankers, operating 42 very large crude carriers, nine suezmaxes, five aframaxes and several other ships, with the fleet’s average age at nine years.