Vitol clinches $1 billion pre-finance oil deal with Iran
Vitol clinches deal with National Iranian Oil Co. to loan $1 billion in euros guaranteed by future exports
The world's largest oil trader, Vitol, has clinched a deal with the National Iranian Oil Co. (NIOC) to loan it an equivalent of $1 billion in euros guaranteed by future exports of refined products, four sources familiar with the matter said.
The pre-finance deal is the first such major contract signed between Iran and a trading house since sanctions were lifted in early 2016. Vitol and NIOC declined to comment.
It highlights the speed of the oil industry recovery in Iran just a year after lifting of sanctions, which is allowing Tehran to claw back oil market share from arch-rival Saudi Arabia.
Foreign companies still tread carefully for fear of breaking a myriad of complex laws, and oil majors such as Shell (RDSa.L), BP (BP.L) and Eni (ENI.MI) have been slow to return as regular crude lifters...
The Vitol Iranian deal was signed in October and will come into effect this month, one of the sources who is based in Tehran said.