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Iran Looks for Refining Deals to Shield From Sanctions

OIL

The Iranian government is looking at downstream partnerships to secure demand for its crude, according to Argus.

  • Tehran has faced severe sanctions on its oil industry since President Trump reimposed them in 2018 but has managed to boost its crude production to 1.3m b/d in Q4.
  • Successive governments suggested securing “extra-territorial refineries”, mainly targeted at other nations under sanctions, such as Venezuela and Syria.
  • Tehran is exploring the possibility of co-operating in such a deal to provide crude to Venezuela’s 635k b/d Amuay refinery which is operating well below capacity.
  • Tehran also plans to supply equipment to other refineries to provide the repair work at refineries.
  • Iran is also looking for a similar agreement in Syria to restore the 110k b/d Homs refinery.
  • The need for secure demand downstream is more pressing due to the increased Iranian output, Argus said.

Source: Exports

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