Hellenic Petroleum, Iran agree crude supply deal

Greek oil company Hellenic Petroleum has agreed a deal for the supply of Iranian crude, the first in Europe since the lifting of nuclear-related US and EU sanctions against Iran.

Hellenic, which operates the 140,000 b/d Aspropyrgos, the 100,000 b/d Elefis and the 83,000 b/d Thessaloniki refineries, said it has reached a long-term agreement with Iran's state-owned NIOC for the supply of crude "with immediate start of deliveries". No volumes were disclosed.

Hellenic also said a deal has been reached to settle financial liabilities arising from the imposition of nuclear-related US and EU sanctions on Iran.

Since the lifting of sanctions on Iran's oil and petrochemicals sectors on 16 January, Tehran has made it clear it will prioritise recapturing crude market share. NIOC made cuts to its February crude official formula prices for European customers that were issued this week. Turkey's Tupras was, until the Hellenic deal, Iran's only customer in the Mediterranean region.

The sanctions, enacted in 2012, forced Iran to curtail production by around 800,000 b/d to 2.8mn-2.9mn b/d and reduce exports by just over 1mn b/d to 1.2mn b/d.

Iran is targeting an increase of 500,000 b/d within weeks and a further 500,000 b/d in the following six months.