Plan to Raise Europe-Bound Oil Exports to 600,000 bpd

Plan to Raise Europe-Bound Oil Exports to 600,000 bpdPlan to Raise Europe-Bound Oil Exports to 600,000 bpd

Plans have been made to increase oil export to Europe by more than 600,000 barrels per day in the near future, which amount stood at 500,000 bpd in pre-sanctions period.

"Oil contracts concluded with European companies like France's Total, Greece's oil refiner Hellenic Petroleum and Italian enterprises are all long-term," Mohsen Qamsari, director of international affairs at the National Iranian Oil Company, told IRNA.

Commenting on new oil contracts in the post-sanctions era, the official added that short-term contracts have neither been signed nor will they be ever concluded.

"Based on the terms of the agreements, the customer will be provided with one or two cargos at first and as soon as they confirm the quality of the product, annual contracts will be signed," he said.

Asked about Iran's oil tankers, Qamsari said European cargoes are exported with non-Iranian oil tankers, while those for Turkey are delivered by Iranian very large vessels.

"There is no crude oil in our floating storage, only a few condensate cargos that are ready to be exported to target destinations," he said. According to the official, Iran’s oil exports have climbed by 1 million bpd and reached 2.1 million bpd, which explains why the current tanker fleet cannot meet the dramatic rise.

"Gas condensate exports stand at 500,000 bpd," he said, adding that diesel is mainly exported to African markets.

Qamsari believes that the market will decide whether the Persian Gulf country should increase its production by 3.5 million bpd in the future or not.