Chile becomes new purchaser of Iranian crude oil

Iran has found a new buyer for its crude oil after the decision by the US to reimpose sanctions, trading and shipping sources said on Thursday.

According to Platts, Chilean state-owned refiner ENAP has purchased 140,000 tons of Iranian crude for May loading in a rare move, they said.

This is the first time Chile has imported Iranian crude in almost 18 months, according to data from S&P Global Platts trade flow software cflow.

The Suezmax Monte Toledo was placed on subjects on a Kharg Island to Chile route for May 24-25 loading, sources said.

Chile mainly relies on crude oil imports from Brazil, Ecuador, Peru and Argentina but it also occasionally buys crude oil from Middle Eastern countries such as Iraq, Saudi Arabia and Kuwait.

Chile’s monthly crude imports have been in a range of 700,000-900,000 tons over the past year, according to Platts estimates.

State energy company ENAP is Chile’s sole oil refiner, which operates two refineries – Aconcagua and Biobio – with around 220,000 bpd of refining capacity.

International buyers of Iranian oil have until November 4 to wind down contracts before the US reimposes sanctions on the oil, energy, shipping and insurance sectors, according to a US Treasury Department fact sheet.

Iran’s crude output was 3.83 mbd in April, according to S&P Global Platts estimates.

Iran has doubled its oil exports to about 2.2 mbd-2.4 mbd since the nuclear deal was implemented in January 2016.