Jul 11, 2016, 1:12 PM

Iran lets out 5 tankers to world oil firms

Iran lets out 5 tankers to world oil firms

TEHRAN, Jul. 11 (MNA) – An official has reported on signing of a contract to lease out five Iranian tankers to foreign oil companies.

At the present circumstances and given the fluctuations in oil prices, crude and gas condensate storage has gained significance in various areas of the world while the increase in the amount of oil stored on water has resulted in a boom in the market for oil tank leases.

Correspondingly, in time with the removal of sanctions and commute of European and Asian tankers to Iran’s oil terminals, the National Iranian Oil Tanker Company (NIOTC) has sealed a deal to rent out a number of its tankers to foreign firms.

Head of NIOTC’s Rental Office Ali Akbar Akhund Kazami said five Iranian tankers have been hired out noting “continuous negotiations are held between NIOTC and various companies though domestic needs remain as top priority.”

The official reassured that all necessary measures have been taken to set the stage for the Iranian fleet to reenter the European market; “since the JCPOA implementation, a total of five Iranian tankers have been let out to foreign companies.”

Touching upon the attitude held by foreign firms towards renting Iranian oil tankers, Kazemi said “on the whole, foreign companies take up a positive approach as they are willing to resume cooperation with NIOTC.”

“Indeed, these companies also take into account a number of side issues like waiting for more stabilized situations, especially foreign exchange conditions as well as payment or receipt of lease payments,” underlined the official maintaining “a number of these issues have been addressed and so far several rental contracts have been signed with foreign parties.”

Kazemi recalled that some measures include the provision of valid insurance coverage by international insurers, obtaining necessary certification from classification societies, receiving approval of large oil companies, better preparation of the staff as well as following provisions of big oil companies to prepare the fleet of NIOTC; “a portions of these steps have been taken while the others are being accomplished.”

He also referred to the rental market conditions reiterating “the market for renting oil tanker ships is currently appropriate particularly with regard to the increase in China and India’s imports because of opening new refineries.”

“The market situation is also improving for other petroleum products,” Kazemi concluded.


News ID 117999


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