China, India and South Korea are among Iran’s biggest oil customers. But to get around a European Union ban on shipping insurance imposed since July 1, they must use the fleet of the National Iranian Tanker Co. (NITC) to bring the crude to their ports.
Shipments, however, have become unpredictable as NITC’s limited shipping capacity is overstretched. Industry sources told Business World the arrival of the 318,000 deadweight ton Panda in the Persian Gulf early this month may help ease the strain.
The very large crude carrier (VLCC) left Waigaoqiao Shipbuilding September 18. It was initially due to sail to Iran in May, but the sanctions delayed its delivery. A second vessel, Souvenir, is conducting sea trials in China.
Under a $1.2 billion contract, Waigaoqiao Shipbuilding plans to deliver 12 supertankers by the end of 2013 to NITC, which would boost the capacity of its fleet by nearly 40 percent to around 86 million barrels.
Seven of those VLCCs are scheduled for delivery by the end of this year, with the remaining four being completed in 2013, giving Iran greater flexibility to store and transport its oil.
In addition to banning insurance, the EU sanctions are likely to complicate efforts to certify the new NITC tankers at any shipping classification society. Without certification vessels have difficulty securing insurance cover and cannot call at most international ports.
There are 13 major classification societies around the world. Last week, the Korean Register of Shipping became the last of those 13 to announce it will halt all work with Iran. There are some other smaller societies that Iran might be able to use.
Certification involves verifying safety and environmental standards are being observed. Most ports will bar any ship that lacks a certification.
Shipping records show Panda was operating under the flag of Tuvalu, but the small South Pacific island nation said recently it would de-register all Iranian-owned vessels.
