2m Barrels of Gas Condensates on Offer via IRENEX

EghtesadOnline: Two million barrels of natural gas condensate is on offer at discounted prices in the international ring of the Iran Energy Exchange today (Monday).

News ID: ۷۴۷۴۹۵

08 June 2019

Amirhossein Tebianian, the National Iranian Oil Company representative in charge of petroleum products on IRENEX, says the cargo will be offered at a lower price compared to the reference price.

“The base price for Monday’s offer is $67.14 per barrel which is 5% lower compared to the $70.76 reference price,” IRNA quoted him as saying.

The cargo will be offered as per new instructions issued by the Oil Ministry for selling oil and petroleum products on IRENEX, according to Financial Tribune.

As per the current fiscal budget, the Oil Ministry is obliged to offer 2 million barrels of light crude, 2 million barrels of heavy crude oil plus two million barrels of natural gas condensates on IRENEX on a monthly basis.

The minimum purchase order has been reduced from the previous 35,000 barrels to 1,000 barrels for land delivery.

However, the minimum purchase for sea delivery is unchanged.

Buyers can receive the cargo either at Kharg Island terminal off the Persian Gulf for sea delivery or at petroleum storage tanks in Bandar Abbas if they want land delivery.

Offering crude oil and petroleum products on the energy market is part of government efforts to involve the private sector and international companies in the oil industry, which has long been under government control.

The NIOC has so far sold over 1.1 million light and heavy crude in 10 sessions since the program started last October.