China Oil Spill Compensation Claims Face Iran Payment Snags
The reluctance of foreign banks to deal with Iran could complicate any compensation payments resulting from the collision last week of an Iranian oil tanker and a Chinese cargo ship, sources say. The tanker Sanchi, carrying 136,000 tonnes of highly flammable condensate oil, collided with the Chinese dry cargo vessel CF Crystal on Saturday in the East China Sea, causing an oil spill and a blaze that is still raging four days later. Liability has yet to be established but lawyers…
Iran Oil Tanker Firm Still Faces Sanctions
Iran's main oil tanker firm NITC will struggle for some time to call at European ports, get foreign insurance and overcome obstacles under western sanctions, even after a top court has annulled its blacklisted status in the European Union. An interim deal between Iran and world powers signed in November has provided the Islamic Republic with some sanctions relief, helping to boost oil sales. But continued restrictions on shipping and insurance have meant that a return to Tehran's pre-sanction export level of over 2 million barrels per day (bpd) is still some way off. The European court ruling "will not give them carte blanche to transport cargos…
Iran's Oil Exports Pick Up
Iran's oil tanker fleet is gearing up for more business, with some vessels taking to the high seas after over more than a year at home ports, another sign that an easing in Western sanctions is enabling exports to begin to pick up. Iran and Western governments reached an interim agreement in November to restrict Tehran's disputed atomic work in exchange for limited sanctions relief for six months, which came into effect in January. U.S. and European sanctions imposed in the previous two years had sharply hit Iran's oil exports, mainly by making it difficult for buyers to arrange financing for transactions and insurance and documentation for shipments.
EU Considers Allowing Insurance for Tankers Sailing to Iran
The European Union may allow insurance against risks, such as collisions and spills, for tankers carrying Iranian oil, a proposal which would ease curbs on Iran’s crude exports. The EU would prohibit the insurance and re-insurance of Iranian oil “except for third-party liability insurance and environmental liability insurance,” according to a draft document obtained by Bloomberg News. The bloc aims to complete the regulation, which is being considered by national governments, within a month, according to an EU official with knowledge of the matter. Brent oil has risen 14 percent since an EU embargo was announced January 23 to pressure Iran over its nuclear program.
Sanctions May Cut Oil Flow as Ships Cancel Voyages
U.S. and European sanctions designed to pressure Iran over its nuclear program may be cutting the Persian Gulf nation’s oil exports, as vessels cancel trips to the country. Shipments have declined by 300,000 to 400,000 barrels a day, because sanctions are preventing Iran from selling oil, said Amrita Sen, an analyst at Barclay’s Capital in London. Half of the tankers booked to load at the country’s largest terminal last month didn’t complete the voyages, according to brokers, company officials and ship-tracking data. Ship owners are avoiding trade with Iran because U.S. financial sanctions are blocking payments, and the main providers of cover against risks, such as oil spills, are subject to the European Union’s ban on the purchase, transportation, financing and insurance of Iranian oil.
