National Iranian Oil Co. (NIOC) intends to offer a sum of one Mln bbls of crude oil at Iran ‘Energy Bourse’ by the end of current Iranian month (22nd of October 2018). The relevant announcement is expected to be released in few days via Iran Energy Exchange website (IRENEX), reported the PR office of NIOC.
The terms of supply and the executive mechanism have been defined and designed in collaboration with IRENEX and Central Securities Depository of Iran (CSDIRAN) and NIOC.
The sale shall be 20% in Rials and 80% in foreign currency; the former would be settled in cash and before the delivery of the cargo, while the latter would be settled as credit, through a credible bank payment guarantee from the banks acceptable by NIOC, after the cargo is delivered.
Buyers are required to deposit 10% of the order value in Rial to the CSDIRAN’s account which will be a part of the 20% in Rials.
The initial crude oil price shall be determined by Dept. of International Affairs of NIOC.
The crude oil delivery to the buyers would be in minimum 5,000 tons cargo lots, equivalent to about 35,000 standard bbls. The crude oil shall be delivered at a chosen port of delivery as per NIOC GTC.
The executive mechanism as well as other terms of delivery, including the base price, the means for delivery of the goods, the provisional and final settlements, the terms of the payment guarantee, etc., will be announced in the delivery notice.