Shell-NIOC Discord on Oil Sale Volume “Not Deep”

Shell-NIOC Discord on Oil Sale Volume “Not Deep”Shell-NIOC Discord on Oil Sale Volume “Not Deep”

There are some disagreements over the volume of oil sale to the multinational oil and gas company Royal Dutch Shell, director for international affairs at the National Iranian Oil Company said on Monday.

“Despite current differences between the National Iranian Oil Company and Shell, the two sides are expected to reach a conclusion with the continuation of negotiations, as the disagreements are not deep,” Seyyed Mohsen Qamsari was also quoted as saying by Mehr News Agency.

Royal Dutch Shell, the seventh largest company in the world as of 2016 in terms of revenue, paid €1.77 billion ($1.9 billion) it owed NIOC in March, settling debts after sanctions against the country were lifted in January.

The outstanding debt to Iran was a result of Iranian oil deliveries that Shell had been unable to pay due to sanctions.

Qamsari added that Iran has no restriction on supplying as much oil the foreign company intends to buy.

On resuming oil export to Germany, the official said before the imposition of the US-engineered sanctions against Iran’s energy sectors, Iran had no oil exports to the European country under long-term contracts, but Shell is likely to sell a part of the oil purchased from Iran to Germany.

Qamsari had earlier said around 35% of Iran’s total oil exports go to European markets, adding that plans have been made to increase export by more than 600,000 barrels per day in the near future, which amount stood at 500,000 bpd in the pre-sanctions period.