As of October 2018, IRENEX officially started offering oil and was welcomed by the customers in its initial offerings of about one million barrels.
After ratification of the current year’s (1398) budget bill on offering at least six million barrels of oil and gas condensates at IRENEX, offering such products at the energy market came with a regularity. Presently, crude oil and gas condensates are offered in turn at the international ring of the IRENEX, every other week.
In this report, advantages of purchasing Iranian oil from IRENEX are compared with those of conducting direct negotiations with Iranian oil ministry.
1. Purchasers’ info not disclosed
At IRENEX the purchasers’ data remain confidential and they are not even introduced to the brokers’ and brokerage networks. Each purchaser is provided with a code and does the sales under it.
2. Lower prices
The prices of the offered crude oil and gas condensates at IRENEX are lower than Brent and the international market. For example, at the fifth round of oil offering at IRENEX, crude oil was offered 14 percent lower than the time international Brent prices i.e. purchasing each 35,000 barrels of crude oil from IRENEX would bring a purchaser a profit of $500,000.
3. Payments in rial
The payment mechanism at IRENEX is rial-based which lets the foreign investors to remain safe from the sanction. At IRENEX, foreign investors have the chance to purchase oil and cooperate with Iranian private sector i.e. the Iranian private sector, who is capable of exchanging foreign currencies to rial easily, buys oil at IRENEX and delivers it to foreign investors. The Iranian side returns the earned money to Central Bank of Iran (CBI) afterwards.
4. Exports destinations unlimited
Oil buyers can export the purchased cargoes to any country across the globe, except to the Zionist regime.
5. Small cargoes
Oil and gas condensate are offered in 35,000-barrels cargoes at IRENEX, which are small ones and allow the private companies to take part in purchases. Presented cargoes by the oil ministry are larger and no company can participate in that market. At IRENEX, the buyers can receive their cargoes both through maritime routes from Kharg Island or via Iran’s land borders.
6. Participation in IRENEX easy
Iran’s oil ministry merely sells oil to known and identified purchasers or companies with good reputation and background, while at IRENEX, the only required document to enter the market is a reliable guarantee.
According to Iranian official, crude oil and gas condensates are be offered at IRENEX with a regular basis each week. IRENEX can be a golden opportunity for both Iranian and foreign investors with spot or long-term agreements.