DUBAI: Iran pushed back the start date for sales of a new heavy oil grade to June to give buyers more time to test the crude in their refineries.
Production of the heavy oil grade is set to climb by March or April, according to three marketing officials at National Iranian Oil Co. The company had expected a March start for sales and is delaying that to provide more time for refinery testing, according to the officials, who asked not to be identified, citing company policy.
Iran, OPEC’s second-biggest producer until sanctions were intensified in 2012, expects to add 500,000 barrels of daily production by March 20 as part of its effort to regain market share. The new output adds to a glut that has pushed Brent crude prices down by more than 40 per cent in the past year.
State-run NIOC is still working on a marketing plan for the new grade which will have a separate official selling price, the company officials said.
Now the fifth largest producer in the Organisation of Petroleum Exporting Countries, Iran will produce its new grade from a cluster of fields in the West Karoun region, near the Iraqi border. Most of the it will come from the Yadavaran, South Azadegan and North Azadegan fields, a NIOC official said last month.
The West Karoun fields will provide more than 1 million barrels of combined daily production after expansion there is completed. NIOC hasn’t designated a name for the grade or determined how much of it will be available for sale.
