The CEO of Total, Patrick Pouyanne, announced on Thursday, January 27, after meeting with Iranian President Hassan Rouhani, that the company will sign a contract to purchase crude oil from Iran. According to Reuters, the company will sign a contract to buy 150,000 to 200,000 barrels of crude oil daily from Iran. The contract is expected to be signed late Thursday. Rouhani traveled to France after a trip to Italy, where he signed over $18 billion in contracts, and is expected to sign more than 20 contracts and memorandums of understanding between the two countries. Before sanctions, the European Union was a customer of 800,000 barrels of Iranian oil and gas condensates daily, but stopped buying oil from Iran in 2012 due to sanctions. Before Total, Iran signed its first oil sales contract to Europe after the lifting of sanctions with Hellenic Petroleum, Greece's largest oil refinery. Hellenic Petroleum announced on January 27 that it would immediately begin purchasing oil from Iran. Greece, which used to import 120,000 barrels of oil from Iran daily before sanctions, now states that it will source 25% of its imported oil from Iran. Iranian oil ministry officials have stated that Tehran will increase its oil exports to 500,000 barrels per day within the next six months, while excess oil supply has driven prices to their lowest level in 12 years. OPEC oil prices rose slightly above $26 on Wednesday, while in the first half of 2014, the figure was around $108. Iran currently produces 2.8 million barrels of oil daily and, according to the U.S. Energy Information Administration, has about 30 to 50 million barrels of oil stored in tankers, most of which is gas condensate. International sanctions have reduced Iran's oil exports from 2.2 million barrels per day to about one million barrels. On January 19, the International Energy Agency warned in a report that the return of Iranian oil could push prices even lower as it would fill the gap left by reduced U.S. shale oil production in the market. Furthermore, Reuters previously reported that Spanish, Italian, French, and Greek refineries are the most suitable options for purchasing oil from Iran, as these countries were among Iran's oil buyers before sanctions were imposed.
Total, the French Oil Giant, to Buy Crude Oil from Iran
Total, the French oil giant, has announced a contract to purchase crude oil from Iran, marking a significant step in Iran's re-entry into the European oil market post-sanctions. This comes after Iranian President Rouhani's visit to France, where multiple agreements are expected to be signed. The deal highlights the shifting dynamics in global oil markets and Iran's efforts to boost its oil exports.
👥 Key Players
📰 What Happened
Total has announced a contract to purchase between 150,000 to 200,000 barrels of crude oil daily from Iran. This deal signifies Iran's re-entry into the European oil market following the lifting of sanctions.
- Total's contract is part of a broader series of agreements between Iran and European nations.
- Iran aims to increase its oil exports to 500,000 barrels per day within six months.
💡 Why It Matters
📚 Background
Iran's oil exports were heavily restricted due to international sanctions, which have now been lifted, allowing for renewed trade relationships with European countries.
Translated from the original and edited for English readers. View original source →
Translation confidence: 85%