Iran confirms selling 2m barrels of oil to Poland

July 3, 2016 - 10:22

Poland's Grupa Lotos has bought 2 million barrels of crude from Iran in a one-off purchase, an Iranian oil official was quoted as saying on Saturday by the oil ministry's news agency SHANA. Mohsen Ghamsari, the director for international affairs at National Iranian Oil Company (NIOC), said the cargo was loaded at Iran's Kharg Island last week.

"Signing a long term contract would depend on the two countries' situation," he added.

Reuters reported on Thursday that a supertanker with Iranian crude was heading toward Poland's Baltic Sea port of Gdansk as Iran continues to claw back market share after the lifting of Western sanctions.

The cargo is the first Iranian crude sold into this part of the Baltic Sea market since January's lifting of sanctions, intensifying the battle for market share between top producers including Russia and Saudi Arabia.

Nearly wholly dependent on oil from Russia, Polish refiners are taking advantage of the turf war and cheap oil prices to try alternative grades and gain a stronger negotiating position with Russian producers.

Before sanctions, Iran was exporting about 2.2 million barrels per day (bpd). July exports are expected to be around 2.1 million bpd, up about 70 percent year-on-year.

In May, Poland's deputy energy minister said the country was in talks with Iran over cooperation in the oil and gas sector.

(Source: Reuters)

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