NIOC Eyes Sale of 1.4 mbpd of Crude Oil in Fiscal 2023-24

The National Iranian Oil Company (NIOC) is projected to sell 1.4 million barrels per day of crude oil at $85 as per the budget law of next Iranian year (March 2023-24), partly by using a barter system.

President Ebrahim Raisi made the statement in a speech addressing the parliament members on Sunday, ISNA reported.

“The next year’s budget bill has predicted oil barter to produce income,” he added.

A general draft of next year’s budget bill was approved by the parliament on Jan. 22.

Raisi did not give more details on the barter plan.

In 2021, his administration discussed the idea of paying back investments on construction projects with oil.

The government is allowed to settle its debts to contractors by oil and derivatives under a plan that needs buyers to find “new markets” other than existing customers of the Oil Ministry.

Armed forces would also be granted a “certain quota” of crude and gas condensates to be refined in Iranian refineries and use the revenues.

Debts to several other institutions, including “non-state and revolutionary” entities, can be paid off by crude allocations, the news agency added.

The new Iranian year will start in March.

According to S&P Global Commodity Insights data, Brent was $85.90 per barrel on Jan. 20.

The new year’s crude and oil products sales will amount to $26 billion, based on the state-set rate, according to the new budget.

That means Iran expects its oil income to rise by 25% compared with the current year in local currency, which has declined due to inflation.

Published: Jan 24, 2023

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