News & Reports News Year 2012 September , 2012 Report: China Seeks Full Iran Oil Volume for Third Month

Report: China Seeks Full Iran Oil Volume for Third Month

TEHRAN (FNA)- For the third month in a row, China has nominated full contract volumes of Iranian crude for September, trading sources said.

China, Iran's largest oil customer and top trading partner, is expected to load about 15.5 million barrels of Iranian oil this month, the third that it will be using the tankers of the National Iranian Tanker Co. (NITC) to carry home oil and get around a European Union insurance ban that began in July, a Reuters report said.

NITC has a fleet of 39 oil tankers including 25 VLCCs. It will also soon expand its fleet, which includes a $1.2 billion order to have 12 super-tankers to be built in China.

China and Iran agreed in June to use NITC vessels to supply oil on a delivered ex-ship basis (DES), which sets settlement prices at the point when the oil leaves the tanker in the Chinese port and requests the seller to provide third-party insurance to cover indemnities for oil leaks and personal injuries.

Since July 1, the European marine insurance market that dominates the sector has stopped covering vessels carrying Iranian oil.