8,432 Active Recruiters     Over 2 Million Candidates Globally

  1. Keep me logged in
  2. forgot password

Checkout Jobs Basket (0)

You can checkout a maximum of 150 jobs.

Signup Better for Candidates

  • Create a free virtual CV and let recruiters find you
  • Automatically have your profile matched to suitable Oil & Gas positions
  • Link to your profile using it as a free online CV
  • Store all your employment documents to your profile for easy sending
  • Always receive feedback on positions applied for

Signup Better for Recruiters

  • Suitable candidates automatically matched to your position
  • View candidate profiles for free
  • No more waiting for candidates to respond to job advertisements
  • Only ever pay when you match a candidate to a position
  • No more cold calling and sorting through out dated CVs

U.S. Sanctions China State Oil Trader for Iran Crude Deal

Published in Oil Industry News on Friday, 26 July 2019

Graphic for News Item: U.S. Sanctions China State Oil Trader for Iran Crude Deal

The U.S. has sanctioned a Chinese state oil trader for violating restrictions on Iranian crude, an attempt to tighten restrictions on the Islamic Republic and cut off one of its biggest buyers.

Zhuhai Zhenrong Co., the secretive company with links to the Chinese military, has a history of taking Iranian crude and fuel, at times as part of barter deals for goods or services, and then selling it on to refiners in China. The U.S. move comes at a delicate time for relations with Beijing as the two nations attempt to kick-start negotiations aimed at resolving their broader trade conflict.

Secretary of State Michael Pompeo announced the decision in a speech Monday, adding that sanctions would also be imposed on the company’s chief executive officer, Li Youmin.

Hot Tip

Once registered on oilandgaspeople.com as a candidate be sure to build a detailed profile. Other job sites save you time by scraping your CV into one database field but our structured database makes it much easier for recruiters to search and find you. Better for candidates.. Better for recruiters..

“They violated U.S. law by accepting crude oil” from Iran, Pompeo said. “We’ve said all along that any sanction will indeed be enforced.”

Specifically, the company “knowingly engaged in a significant transaction for the purchase or acquisition of crude oil from Iran” after restrictions were fully in place on May 2, the state department said in a separate statement.

Li declined to comment when reached by Bloomberg News on Tuesday. The trading company merged in 2015 with Macau, China-based Nam Kwong Group, which said Tuesday that it separated from Zhuhai Zhenrong in September.

“The company mainly handles crude, oil products and other products and services trading with Iran through barter system, so the U.S sanctions has very limited impact,” said Seng Yick Tee, an analyst at Beijing-based SIA Energy.

Tensions between Iran and the U.S. have intensified since the Trump administration backed out of the deal aimed at curbing Tehran’s nuclear program and reimposed sanctions. China, which is increasingly reliant on energy imports, reiterated its criticism of the restrictions on Tuesday, with Foreign Ministry spokeswoman Hua Chunying calling them a violation of international law.

The sanctions against Zhuhai Zhenrong also come amid signs that Iran has been able to skirt U.S. efforts to curb exports.

Iranian crude is still making its way to China, but being placed in bonded storage rather than passing through customs, according to people familiar with the operations at several Chinese ports. That’s creating a hoard of crude sitting on the doorstep of the world’s biggest importer.

And there could be more Iranian oil headed for China’s bonded storage tanks, Bloomberg tanker-tracking data show. At least 10 very large crude carriers and two smaller vessels owned by the state-run National Iranian Oil Co. and its shipping arm are currently sailing toward the Asian nation or idling off its coast. They have a combined carrying capacity of over 20 MMbbl.

There is no indication that Zhuhai Zhenrong is involved in these trades.

Before waivers for Iranian oil purchases expired in early May, China was the No. 2 destination for its oil exports, receiving 267,000 bpd in April, according to Bloomberg ship-tracking data. India was the top buyer that month, lifting 333,000 bpd.

Zhuhai Zhenrong’s imports from Iran averaged about 156,000 bpd in the first five months of this year, according to SIA Energy’s Tee. That’s down from as high as 221,000 bpd in 2015.

The company could potentially continue to take Iranian oil despite U.S. efforts, Fereidun Fesharaki, chairman of industry consultant FGE, said in April. He estimated that Iran could continue selling about 200,000 bpd to the Chinese trader despite the restrictions.

China’s crude oil imports from Iran in May declined 67% on-month to 1.08 million tons (about 255,000 bpd), according to statistics by the country’s customs authority. China’s official country-level import data for June is scheduled to be released this week.

Source: www.worldoil.com

Please leave comments and feedback below


Amercan Oil and Gas, Chevron Oil and Gas, Gulf of Mexico Oil and Gas, Oil and Gas News

Oil and Gas News Archive

Latest Oil & Gas News

Featured Companies

  • View All JobsOMPA

    Offshore Marine People & Academy (OMPA) is a global provider of personnel and training to the renewables, oil & gas, telecommunications and marine industries.

    With over 15 years' industry experience, we work with candidates to match them to the right roles and equip them with the skills and knowledge needed to succeed. Our job is to exceed your expectations.

    Visit us online: offshorempa.com

  • View All JobsChronos Oil and Gas

    Chronos Oil and Gas is one of the fastest growing and best placed recruitment agencies in the sector.

    With over 300,000 candidates on our database and an international team of specialist recruiters we work with clients to staff major projects around the world.

    Register your CV at www.chronosoilandgas.com

  • View All JobsNatural Resources

    Natural Resources is a UK based recruitment company providing personnel of all disciplines and nationalities worldwide.

    We represent clients and candidates at all levels who operate globally within oil & gas, renewables, nuclear, power, mining, marine, drilling, construction and petrochemicals. Our client base includes energy and construction.

    Visit Natural Resources at natural-resources.com