(MENAFN- Arab Times) Iran's oil exports, which had peaked at more than 3 million barrels per day (bpd) in 2011, fell to a little more than 1 million bpd after tougher sanctions were imposed in 2012 because of its nuclear programme.
After the rubber-stamping of the nuclear deal with world powers last year, however, Tehran has ordered a 500,000 bpd increase in oil output.
"Based on the contract signed between the National Iranian Oil Co and France's Total, it was agreed that Total will buy 160,000 bpd of crude oil from Iran to be delivered in Europe," Zanganeh was quoted as saying by news agency SHANA, adding that the contract would be finalised on Feb 16.
Zanganeh also said Italy's Eni was interested in buying 100,000 bpd of crude oil from Iran and its representatives would visit Tehran in near future to discuss the contract.
"Eni has voiced its interest in one of Iran's fields which will be treated like the agreement reached with Total," he said.
Iran's oil minister said Italian refiner Saras was interested in buying 60,000 to 70,000 bpd of crude oil from Iran.
Tehran is sweetening the terms it offers on oil development contracts to draw the interest of foreign investors deterred by sanctions and low crude prices, as its pragmatic president seeks to deliver on his promise of economic recovery.
The new contracts, which include those in the upstream exploration and development sectors are expected to attract more than $40 billion in foreign investment.
Iran has postponed a planned oil conference in London, which was due to have taken place in February to reveal its new contracts, until November. An Iranian official said "the US urged Tehran to hold off" until a final nuclear deal was penned.
Meanwhile, Anglo-Swiss commodity trader Glencore has chartered a ship to load Iranian fuel oil at the Iranian port of Bandar Mahshahr in a move that signals the return of legitimate Iranian crude and oil products to international markets.
The Greek-owned vessel, Green Warrior, arrived at the Iranian port of Bandar Mahshahr on February 3, on a fully fixed charter by Glencore and is set to load 80,000 tonnes of high-sulphur fuel oil bound for Singapore, according to Thomson Reuters ship tracking data as well as traders and shipbrokers with knowledge of the matter.
A Glencore spokesman declined to comment.
Despite the lifting of sanctions in mid-January, most international insurers are no closer to resolving concerns over remaining US sanctions, limiting oil companies' ability to steal a jump on rivals in the race to benefit from Iran's return to oil markets.
"Most P&I Clubs are not yet ready to offer protection for Iran for various reasons. Re-insurance in the US being one of them," said one European-based shipbroker.
P&I clubs provide third-party liability insurance and pollution cover for vessels, consisting of marine insurers owned by shipping clients and reinsured internationally.
While the most popular P&I Clubs are not yet providing insurance coverage to vessels loading in Iran, "there are P&I Clubs out there that are more risk hungry and that's why we're starting to see the beginning of it," said a Singapore-based shipbroker.
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