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Iran to sign new oil deal with Sri Lanka

Staff Writer | July 25, 2016
Iranian and Sri Lankan oil ministers have begun a fresh round of oil talks over signing the first oil sale contract in the post-sanction era.
Bijan Zanganeh
Oil production   Sri Lanka needs 45 to 50 thousand crude barrels per day
With the passage of seven months since sanctions removals and Iran’s entrance to post-sanction period, a new round of oil talks between Iran and Sri Lanka kicked off in Tehran at presence of Iran’s Oil Minister Bijan Zanganeh as well as the Sri Lankan Minister of Petroleum Resources Development Chandima Weerakkody.

Sri Lanka marks a traditional customer of Iranian crude as 100 per cent of the oil demand in its only oil refinery, Ceylon Petroleum Corporation, was supplied by Iran before the imposition of international sanctions.

Recently, National Iranian Oil Company (NIOC) Executive Director for International Affairs Seyed Mohsen Ghamsari had announced that oil exports to Sri Lanka has not started yet adding “NIOC executives in Singapore have launched talks with officials if Ceylon Petroleum Corporation over resumption of oil sales.”

The NIOC official had voiced Iran’s readiness to supply the whole 40-thousand-barrel demand of Sri Lanka underlining “over the past three years, some countries have taken Iran’s market share during sanctions years and we are seeking to regain the market.”

At the present time, Sri Lanka’s total crude oil demand is estimated to be approximately 45 to 50 thousand barrels per day.