The National Iranian Oil Company will offer two million barrels of light crude oil at the international ring of the energy exchange (IRENEX) on Tuesday (June 11) at the base price of $67.32 per barrel.
To facilitate the sales on IRENEX, the ministry has reduced the minimum purchase order from 35,000 barrels to 1,000 barrels for land delivery.
Those interested are required to pay 6% of the order value in rials or foreign currency two hours before the beginning of trading time at 02:30 pm local time. Moreover, the payment clearance period has been extended from 60 to 90 days.
The base price of a barrel of crude is in line with the average Brent quotations during 10 international business days before the date of the offer.
Buyers can receive the cargo either at Kharg Island terminal off the Persian Gulf for sea delivery or at Tabriz Refinery if they want a land delivery.
Offering crude oil on the stock market is part of government efforts to involve the private sector and international companies in the oil industry, which has long been under government control.
There are several advantages for purchasing oil from IRENEX, including the lower prices, smaller cargoes, easy conditions for participating the market, clearing the payments in rial and exporting the purchased cargoes to all over the world.
Role of the private sector in oil exports has gained traction, particularly after the new US sanctions, which among other things, has hit the oil industry hard, aiming to paralyze the economy.
NIOC has so far sold 1.1 million barrels of crude via IRENEX.