Insurance Snags May Impede Iran Oil Exports

Posted by Joseph Keefe
Tuesday, January 26, 2016

Efforts by Iran to start exporting oil to Europe are being held up as foreign tanker owners are still struggling to secure insurance for cargoes, leading shipping players said on Tuesday.

A nuclear deal between world powers and Iran earlier this month led to the removal of curbs on Tehran's banking, insurance and shipping sectors.

Since then, Iran has ordered a 500,000 barrel per day (bpd) increase in oil output, of which 200,000 bpd will go to Europe.

But many foreign firms remain wary of violating other sanctions that were imposed by the United States and have not been lifted. Measures still in place from Washington prohibit most business between U.S. persons, U.S. companies and Iran as well as no dollar trades.

Paddy Rogers, chief executive with tanker operator Euronav , said his company had been approached to carry Iranian oil to Europe.

"We have had enquiries. It is interesting that the first enquiries to move Iranian oil came from Europe not from China," Rogers told a Capital Link web conference.

Third-party liability insurance and pollution cover for vessels is provided by P&I clubs - marine insurers owned by shipping clients and reinsured internationally.

Rodgers said the umbrella International Group of P&I clubs were still unable to confirm payments under re-insurance contracts.

"It has not been cleared yet. So, nobody can load at the moment it seems to me ... unless somebody has some alternative method of insurance," he said.

"I think this is going to come on. But it will take time and it won't be very straightforward."

Greece's biggest oil refiner Hellenic Petroleum agreed on Friday to buy crude oil from state-owned National Iranian Oil Company, becoming the first European refiner to restart trade relations with Tehran.

Iran's oil exports have fallen to just over 1 million bpd, from a peak of more than 3 million bpd in 2011 - before the imposition of tougher sanctions.

Oil held by Iran on its domestic tankers in floating storage is estimated by shipping sources to be at least 40 million barrels as the country struggles to offload supplies because of a global glut.

Robert Hvide Macleod, chief executive with tanker group Frontline Ltd, said he expected additional Iranian exports of at least 500,000 bpd this year.

"They will do what they can what they can to get the European market back and there will be demand for international tonnage to handle this volume," he said.

Macleod said the insurance and payment system was still not there yet, but added that it "will get in place in the short-term".

Nikolas Tsakos, president and chief executive of another leading tanker player Tsakos Energy Navigation Ltd, said competition between Iran and arch rival Saudi Arabia was expected to heat up, further boosting vessel demand.

"They are going to compete and are going to try to out produce each other," Tsakos told the call. "That, of course will add supply in the market."


Reporting by Jonathan Saul

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money

News

ABP orders Two Gottwald cranes

Terex Port Solutions (TPS) has received an order from Associated British Ports (ABP) for two electric Terex Gottwald Model 8 portal harbour cranes in the G HSK 8424 B four-rope grab variant.

Traffic Separation Schemes off Western Australia

On 1 December 2016 two new Traffic Separation Schemes (TSS) will come into effect off the south-west coast of Western Australia. Australia’s proposal to establish

Austal Delivers LCS 8 to US Navy

Austal Limited (Austal) (ASX:ASB) delivered the future USS Montgomery (LCS 8) to the U.S. Navy, during a ceremony held aboard the ship at Austal USA’s shipyard in Mobile,

Government Update

Traffic Separation Schemes off Western Australia

On 1 December 2016 two new Traffic Separation Schemes (TSS) will come into effect off the south-west coast of Western Australia. Australia’s proposal to establish

Austal Delivers LCS 8 to US Navy

Austal Limited (Austal) (ASX:ASB) delivered the future USS Montgomery (LCS 8) to the U.S. Navy, during a ceremony held aboard the ship at Austal USA’s shipyard in Mobile,

Berthing Policy for Dry Bulk Cargo for Indian Ports Unveiled

Ministry of Shipping has formulated a new Berthing Policy for Dry Bulk Cargo for all Major Ports which will come into effect from 20th August, 2016. The objective

Logistics

Maersk Takes Coffee Very Seriously

Maersk acknowledges that coffee is very special, mainly in regards to the processes and requirements involved for it’s shipping. "So we have adapted the way we work so we can meet your needs,

World Trade Routes Won't be the Same with Expanded Panama Canal!

On 26th June 2016, a landmark development for the shipping industry will occur with the opening of the new third set of locks at the Panama Canal. Clarksons Research takes a look.

CMA CGM to use Kingston As Transshipment Hub

French shipping giant CMA CGM plans to use Kingston Container Terminal,  Jamaica as a strategic Caribbean transshipment hub for an enlarged Panama Canal. The Port connects to US East Coast,

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Pipelines Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1417 sec (7 req/sec)