IRENEX to gain, but not overnight: Zanganeh

TEHRAN, Feb. 23 (MNA) – Oil Minister Bijan Namdar Zanganeh says efforts for offering crude at Iran Energy Exchange (IRENEX) will finally pay off, but the bid needs time. Speaking to ICANA on Saturday, Zanganeh said IRENEX is expected to gain but the efforts may take a while to come into fruition. “The Oil Ministry continues to offer crude at IRENEX every week to reach the desired results,” he added. In a bid to implement the policies of resistance economy, the National Iranian Oil Company has started offering gas condensate and light crude oil at IRENEX on a weekly basis. Five rounds of crude sale have so far been launched at the energy exchange. NIOC sold 280,000 barrels, divided in 35,000-barrel consignments, at $74.85/b during the first round. The second round looked more promising as the company sold 700,000 barrels at $64.97/b. But the third round (January 21) and the fourth round (February 4) ended without any trade, although these two rounds underwent some procedural change to meet the purchasing conditions for buyers. The fifth round was held on February 18, when only a 35,000-barrel consignment of light crude was sold at $52.25. To shoulder US pressures on Iran’s oil sale, the market initially needs time to get experienced with attracting both domestic and foreign customers via improving its business environment and getting as transparent as possible. It is essential for the market to remain stainless from corruption and rent-seeking. Zanganeh said several open and undisclosed talks have been held with crude costumers to find solutions over the hurdles created by the US’ sanctions on the Islamic Republic’s energy sector. He did not elaborate. The veteran minister has just returned from a three-day visit to Beijing. MNA