Iran still faces
constraints on oil exports as buyers are cautious about boosting trade
immediately because of banking and ship insurance difficulties, a senior
Iranian oil official said, despite seeing a "tangible" rise in
shipments this month.
Iran
emerged from years of economic isolation in January when world powers led by
the United States and the European Union lifted crippling sanctions against
OPEC's No.3 oil producer in return for curbs on Tehran's nuclear ambitions.
The
sanctions had cut Iranian crude exports from a peak of 2.5 million barrels per
day (bpd) before 2011 to just over 1 million bpd in recent years.
Iran
is working to regain market share after sanctions relief and exports had
already risen by 500,000 bpd in February, Mohsen Ghamsari, director of
international affairs at National Iranian Oil Co (NIOC), told Reuters on
Tuesday.
But
the country's crude shipments, particularly to Europe, have been complicated by
a lack of clarity on ship insurance, dollar clearance and European banks'
letters of credit.
"For
March, definitely our volumes are going to be higher than February ... but it
depends on the logistics situation and the banking channels. Still, some
shipping companies are somehow reluctant to come and banks also," he said
in a telephone interview from Tehran.
"If
everything goes well, definitely the volumes for March are going to be higher
than February. The difference between March and February is going to be quite
tangible. The main or biggest portion of these additional cargoes is going to
be destined for Europe," he added.
Litasco,
the trading arm of Russia's Lukoil, Spanish refiner Cepsa CPF.GQ and France's
Total have become the first buyers in Europe since the lifting of sanctions,
trading sources told Reuters.
Ghamsari
said those cargoes were trial shipments and NIOC had started negotiations for
term contracts with potential buyers.
"Definitely
in March you are going to see some good news for additional barrels or cargoes
destined to Europe," he said.
MAXIMIZING
MARKET SHARE
Tehran
has said it would boost output immediately by 500,000 bpd and by another
500,000 bpd within a year, ultimately reaching pre-sanction production levels
of around 4 million bpd seen in 2010-2011.
Ghamsari
said it was difficult to give an exact number for Iran's oil exports but the
plan was to raise shipments by roughly an additional 500,000 bpd to reach 2
million bpd this year, depending on market conditions.
"We
believe within this year we have to maximise our share ... our goal is to have
it within this year," he said.
"But
it is a plan and it is a desire. How much it is successful depends on the
market and the negotiations with the customers," he said.
Even
a gradual increase in Iran's exports would come at a time of global oversupply,
with producers around the world pumping hundreds of thousands of barrels every
day in excess of demand. Oil prices are near 11-year lows at around $37 a
barrel.
Saudi
Arabia, Qatar, Venezuela and non-OPEC Russia agreed last month to freeze output
at January levels in the first global oil pact in 15 years.
Iranian
Oil Minister Bijan Zanganeh said last week the freeze was
"laughable". Iranian sources say the country would be prepared to
discuss a production pact once its output had reached pre-sanctions levels.
Ghamsari
said Iran would not offer further discounts but could consider a pricing
improvement for its crude sales to Europe by selling some spot cargoes at the
dated Brent benchmark, though it was sticking with Brent Weighted Average
(BWAVE) for its term contracts.
"Maybe
for some small cargoes we would be able or looking to price (them) based on
dated Brent but the term contract will be based on BWAVE," he said.
Other
than Europe, NIOC's main targets for increased oil sales in Asia are China,
India and South Korea, he said.
(Reuters)