Iran appears to be taking steps for its official return to the international oil market after more than three years.
Officials from state-owned National Iranian Oil Co. were meeting at least two South Korean refiners to discuss a potential return of supply from the Persian Gulf producer, according to people with knowledge of the matter. Talks are at a preliminary stage with volumes and a possible timeline yet to be specified, one person said. The nation used to be a major buyer of Iran’s ultra-light oil.
The move comes as envoys involved in nuclear talks say they have reached a critical stage, with the window for a deal narrowing. Tehran and Moscow have consistently sounded more upbeat about progress than their U.S and western counterparts. An agreement would allow the return of 500,000 barrels a day of Iranian oil to international markets in April to May, eventually rising to 1.3 million barrels by year-end, according to Citigroup Inc.
An Iranian delegation made up of officials from the central bank, oil ministry and the NIOC were in Seoul Feb. 15-16 for working-level talks that would touch upon financial and oil-related matters, according to a statement on the South Korean foreign ministry’s website. The two nations were planning to target talks over Iran’s frozen assets in the Asian country, Yonhap reported Jan. 29.
South Korea imported as much as 18.5 million barrels a month from Iran before U.S. sanctions in 2018. While the biggest buyers of Iranian oil including Korea were able to continue purchases thanks to waivers, these weren’t renewed and imports halted in the first half of 2019.
Iranian officials had initially planned to visit Japan this week following the trip to Seoul, but that’s been called off due to a COVID-19 infection among delegation members, according to people with knowledge of the matter.
Advertisement