ENOC sends oil to Iran despite US sanctions
On August 3, the vessel “VF Tanker-20” under the Russian flag arrived and discharged in the Iranian port “Neka” for unloading about 6,000 tons of Turkmen oil of the “Dragon Oil” company production.
Report informs, the shipment took place on August 3-4 in the terminal owned and operated by the NIOC (National Iranian Oil Company).
This is the first oil shipment in a long time that “Dragon Oil”, 100% owned by the UAE's ENOC, has decided to supply to Iran independently jointly with its subsidiary trade structure ENOC Trading in Singapore.
So far, “Dragon Oil” has sold all export volumes of oil on tenders on the basis of FOB Alaja, Turkmenistan. Due to the sanctions against Iran, those volumes since 2011, were directed towards Europe through Azerbaijan (Baku-Tbilisi-Ceyhan oil pipeline or Baku-Batumi railway) or Russia (Makhachkala-Novorossiysk oil pipeline).
Decision of “Dragon Oil’ and ENOC to resume the oil supply to Iran has surprised market actors.
In the situation when “Dragon Oil” carries out all payments of the Turkmen oil in US-dollars, works with American contractors on a long-term basis (for example, the US company Schlumberger), and have the US citizens in managing positions, the decision to resume supplies to Iran looks hasty and risky.
It is also surprising that ENOC, the UAE national oil company, is actively developing new business with Iran, bypassing US sanctions, despite the fact that the UAE is the USA's main ally in the region.
It's not excluded that this supply to Iran was not initially planned by the “Dragon Oil” company. Thus, the “VF Tanker-20” vessel arrived in the Azerbaijan's Baku port and was on a raid from July 25 to August 1. Nevertheless, the vessel was not allowed to unload due to the presence of the non-documented (possibly contraband) cargo on it. Afterwards, the ENOC has sent the tanker to the Iranian port Neka, where it's possible to unload the cargo without presenting the documents on goods.
Currently, market actors are awaiting development of the situation - maybe this oil shipment unloaded on Neka was accidental because of the problems with documentation, or probably, it is just beginning of the planned program for Turkmen oil delivery to Iran.
ENOC’s current activity on shipment market and sending several vessels of the Russian company “VF Tanker” to the Caspian Sea in the direction of Alaja port also speaks in favor of the second version.
Related news releases
- 20.08.2017President Ilham Aliyev attended opening of Shamkir Automated Management and Control Center of “Azerishig” OJSC
- 20.08.2017President Ilham Aliyev launched Gadabay electrical substation
- 19.08.2017President Ilham Aliyev launches Chichakli Hydroelectric Power Station after major overhaul
- 18.08.2017Funds allocated for reconstruction of water infrastructure in Baku’s Khazar district
- 18.08.2017ENOC realizes another supply of crude oil to Iran despite US sanctions
- 17.08.2017South Caucasus Pipeline Expansion project now ‘96% complete’
- 17.08.2017BP says SCP daily average throughput was 21.4 million cubic metres of gas per day in 1H 2017
- 17.08.2017BP: About 141 mln barrels of oil exported from Sangachal terminal in 1H 2017
- 17.08.2017ACG delivers 1.8 billion cubic metres of associated gas to SOCAR in 1H 2017
- 17.08.2017BP: Total ACG production over 14 mln tons in 1H 2017
- 16.08.2017Gas transportation from Shah Deniz field to Georgia suspended
- 14.08.2017LUKOIL and SOCAR can jointly invest in Turkish companies
- 11.08.2017Azerbaijan’s revenues from energy export increase 3.4-fold
- 11.08.2017Azerbaijan’s revenues from natural gas export increase sixfold
- 11.08.2017Azerbaijan reduces crude oil export 40%
- 09.08.2017ENOC continues to supply crude oil to Iran despite sanctions
- 08.08.2017New US sanctions on Russia increase uncertainty on European gas markets - S&P
- 08.08.2017Turkmen President to discuss natural gas transportation in Baku
- 07.08.2017ENOC sends oil to Iran despite US sanctions
- 04.08.2017Oil prices rise on strong U.S. jobs data
- 04.08.2017President: Azerbaijan turned into a reliable country supplying gas to world
- 03.08.2017Azerbaijan submits data on July’s oil output to OPEC
- 03.08.2017Power substation launched in Azerbaijan’s Zagatala
- 02.08.2017Volume of Azerbaijani oil transported through Ceyhan port announced
- 02.08.2017BTC transported more than 337 million tonnes of oil so far
- 01.08.2017SOCAR announces volume of exported oil products
- 01.08.2017SOCAR announces sale price of crude oil for last month
- 01.08.2017SOCAR exports 12 million tonnes of oil through three ports this year
- 01.08.2017Azerbaijan sells energy worth $10M to Turkey this year
- 31.07.2017Oil near two-month high as producers set to meet again
- 28.07.2017Georgian official: Baku-Supsa pipeline to operate uninterruptedly
- 27.07.2017SOCAR imports 16,000 tonnes of aircraft fuel from Saudi Arabia
- 27.07.2017Oil jumps to near eight-week high after big draw in U.S. crude stocks
- 25.07.2017Azerbaijan increases gas export to Turkey
- 25.07.2017BP: TANAP is significant project for us
- 25.07.2017Anglo Asian Mining earns $19.4M from sale of gold
- 25.07.2017Oil extends gains as Saudi pledges export curbs
- 24.07.2017Country manager: TAP construction won’t have negative impact on environment
- 22.07.2017Oil dives 2 percent; consultant sees OPEC crude output rise in July
- 21.07.2017President Ilham Aliyev opens Pirallahi solar power plant
- 06.06.2017PM: Bulgaria interested in Azerbaijani gas
- 06.06.2017Azerenergy gets 5% decline in production
- 06.06.2017Azerbaijan delivers 207,000 tonnes of oil to Ukraine since May 10
- 05.06.2017Azerbaijan submits data on May’s oil output to OPEC
- 05.06.2017BTC transports 2.2 million tonnes of Azerbaijani oil in May
- 02.06.2017Azerbaijan sees rise in May’s monetary base