Iran sells 700,000 barrels in second oil auction through Energy BourseTEHRAN (NIOC) _ Iran on Sunday (Nov. 11th) went ahead with a second public sale of its light crude oil to international clients through its Energy Bourse in a policy meant to dodge US sanctions and sell the strategic fuel to direct buyers.
The National Iranian Oil Company (NIOC) had put 700,000 barrels of light oil up for grabs at a proposed price of $65.22 per barrel and the price at which the oil was sold was specified at $64.97 per barrel.
No names and details of buyers were provided as officials had earlier said the identities of bidders were kept confidential.
Director of NIOC's International Affairs stated the company had a pilot project with a capacity of one million barrels from the outset, which in the first stage led to the sale of 280 thousand barrels of crude oil and in addition to the previous facility, the new flexibility regarding the increase in the payment period of the foreign currency from 50 days was considered to be 60 and was welcomed by the private sector.
Saeed Khoshrou added that the companies were informed that they would buy crude oil through the Energy Bourse, since it is the easiest way to buy in the current situation and it is because of the facility created for this type of purchase for customers, and such flexibility is not possible in direct contracts.
He said the supply of oil on the Energy Bourse is also an opportunity for new companies to make purchases to create a record in order to enter into subsequent contracts or direct purchases.
According to NIOC’s arrangements, buyers would have to pay 20 percent of the total value of their purchases in Iran’s national currency – the Rial. The remaining payments would need to be made in foreign currencies after loading.
Buyers would have to pay 10 percent of the value of their purchases in Rials two hours before the start of trading. They can either buy 35,000 barrels of oil or a multiplication of this up to a ceiling of one million barrels.