Frontline: Iran to Overcome Insurance Hurdles in a Few Months

Image Courtesy: Frontline

John Fredriksen-controlled oil tanker shipping company Frontline Ltd. said that there are still some remaining issues related to insurance and payments for cargoes sent from Iran, which could be resolved in two or three months.

“We have not lifted anything yet,” Robert Hvide Macleod, Director and CEO of Frontline Management AS, said during a conference call, adding that “two to three months (is) our estimate,” but that their prediction is subject to change.

This could limit the country’s ability to increase its oil exports, the company said.

Prior to the sanctions being lifted, Iran had a production of about 2.8 million barrels a day, of which about 1.8 million was used by the country’s refineries, leaving a million barrels per day for export.

Frontline estimates that, with the country’s post-sanctions production, there is about 1.5 to 2 million barrels per day available for export.

Iranian tankers have been holding oil cargo due to the country’s lack of land facilities. Frontline expects that the chartering requirements from Iran could increase, and Macleod said that once the insurance issue is resolved, Iran would rely more on international shipping.

Namely, in mid-February Iran loaded its first oil cargo since the lifting of economic sanctions in early January, when three oil tankers belonging to European firms from France, Spain and Russia, arrived in Kharg oil terminal on February 14, after four years of suspension due to the imposed sanctions on the country’s energy sector.

However, a number of uncertainties remain before Iran returns to the market in full scale. These are mostly related to necessary investments of USD 200 billion, which would go into modernization works of the country’s existing oil infrastructures.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jul 2017 >>
MTWTFSS
26 27 28 29 30 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6

Global Liner Shipping Asia Conference

Fight. Survive. Thrive. Respond to challenges of consolidation & disruption at the largest gathering of container shipping industry in Asia…

read more >

Bunkering Week 2017

IBC’s biennial Bunkering Week is back with its successful series of 3 co-located events: 8th Bunkering in Asia, 4th LNG Bunkering and EMTECH: Ship Emissions Technology Conference. With a proven track record of bringing together top decision makers from various industry sectors, this remains the go to event for ship owners, fuel suppliers, traders and […]

read more >

Indonesia Marine & Offshore Expo (IMOX) 2017

Indonesia Marine & Offshore Expo (IMOX) 2017, Batamis an international maritime and offshore industrial event that brings an international…

read more >

Salvage & Wreck Asia

Could your business be affected by shipwreck? Are you a salvage professional or a wreck removal expert? …

read more >