Iran acknowledges crude exports down up to 30%

Iran acknowledged for the first time yesterday that its oil exports have fallen sharply, down 20%-30% from normal volumes of 2.2mn barrels daily. A National Iranian Oil Company official in Moscow denied exports had been hit by sanctions against Iran’s nuclear programme, saying that oilfields were under maintenance and crude production was being diverted for refining. But the admission that exports have fallen substantially is a change of tack from Tehran, which until now has denied that the US and European measures have had much or any impact. “It was 20% to 30% we reduce regarding to our export,” NIOC official Mohamed Ali Emadi said in English. “Some part of the reduction is shifting for the refinery internally.” Customers in Europe and Asia have been scaling back purchases of Iranian crude ahead of European Union bans on imports and tanker insurance for ships carrying Iranian crude that are due to come into effect on July 1. Emadi said Iran’s normal crude exports were 2.2mn bpd, in line with external estimates. A 20%-30% fall would put Iranian exports at 1.54-1.76mn bpd.That is still above most third-party estimates which put Iran’s crude exports in June at about 1.3mn bpd. “We gradually started to reduce, It is not because of the sanctions but sometime regarding overhaul maintenance of the wells,” said Emadi. The NIOC official said Iran wanted to export more gas to India and Pakistan to make up for the fall in crude exports. Iran has long aspired to export gas east but would require heavy investment in a pipeline or liquefied natural gas facilities to do so. “We are trying to compensate (for) the less (oil) export,” Emadi said. “We are in negotiation with Pakistan and India to increase export of natural gas.”