NIOC

Interim dividend likely at ELPE, favorable DEFSA sale progress

Posted on by admin

ELPE (Hellenic Petroleum) could offer an interim dividend as a result of favorable developments concerning the privatization of DESFA, Greece’s natural gas grid operator, approaching finalization, ELPE deputy chief Andreas Siamisiis noted yesterday during a teleconference held for the presentation of the corporate group’s first-half results.

ELPE expects to receive approximately 300 million euros for the sale of its 35 percent stake of DEFSA. The Greek State offered 31 percent of DESFA’s 66 percent being sold.

An all-European investment team comprising Italy’s Snam, Spain’s Enagás Internacional and Belgium’s Fluxys emerged as the tender’s winning bidder.

In other news emerging during the session, ELPE officials informed that outstanding debt owed by ELPE to NIOC, the state-run National Iranian Oil Company, is the equivalent of four million barrels of crude, or two tankers.

During the session, many analysts focused on ELPE’s exposure to Iranian crude supply, disrupted three months ago as a result of the resumption of US sanctions on Iran and the wider repercussions of Washington’s move.

“We received two tankers of [Iranian] crude between May and June and have fully replaced Iranian supply with orders from the Urals [Russia] and Saudi Arabia. We have zero Iranian exposure,” informed ELPE deputy chief Andreas Siamisiis.

Prior to the latest sanctions on Iran, ELPE crude orders from Iran and Iraq represented 22 percent of the company’s total, according to its annual financial report in 2017.

Iran pursuing Greek market interest for refinery, LNG unit

Posted on by admin

The European Central Bank is expected to reach a decision in October on whether to lift banking restrictions on Iranian capital currently deposited at European banks, which would facilitate the country’s business trading ability in Europe, including a proposal for joint business dealings with ELPE (Hellenic Petroleum).

Currently in Athens on an official visit with these prospects in mind, the head of Iran’s central bank, Valiollah Seif, met yesterday with Hellenic Bank Association officials and is scheduled to hold talks today with his Greek counterpart, Yiannis Stournaras.

Seif will be hoping to gain the support of Greece’s central bank governor ahead of the anticipated ECB decision in Iran’s banking restrictions.

In another meeting yesterday, the Iranian bank chief met with Greek energy minister Panos Skourletis. The two officials discussed the Greek market partnership plans proposed by Iran.

Following up on an initial expression of interest for an equity share of ELPE, Iran has also proposed the co-development, with ELPE, of a new refinery in Greece or an overall upgrade, including a capacity boost, of an existing unit in Thessaloniki. This would serve the crude export interests of NIOC, the state-run National Iranian Oil Company.

As for the natural gas sector, Iran is now ready to begin suppling LNG and is seeking distribution channels and buyers. Iran is interested in supplying LNG to the planned LNG terminal in Alexandroupoli, northeastern Greece, and is also contemplating becoming an equity partner for this facility’s construction and operation.

All these thoughts and plans will remain at a theoretical level if the European banking restrictions on Iran are not lifted. The restrictions have remained in place despite the lifting of western-imposed trade sanctions on Iran last January.

Most European banks have prefered to avoid financing Iranian enterprises. The upcoming US elections and presence of European banks across the Atlantic has influenced their ongoing refusal to do business with Iranian enterprises.

ELPE officials set for Iran visit to further discuss cooperation

Posted on by admin

ELPE (Hellenic Petroleum) officials are preparing to soon visit Tehran, energypress has been informed, for further talks with Iranian government and NIOC (state-run National Iranian Oil Company) officials on the prospects of Iran’s support in the development of a prospective floating LNG station in Alexandroupoli, northeastern Greece, as well as joint development of a new refining facility in Greece.

In the lead-up to the visit, Greece’s energy minister Panos Skourletis met yesterday with Iran’s ambassador to Greece, Majid Motallebi Shabestari.

Iran is currently working on two objectives, one to increase oil production to the country’s pre-embargo levels, the other to establish a base in Europe for refining and selling its production in the continent.

Iranian officials have also held talks with Bulgaria as an alternative option to this plan, while other countries in the region may also be at play, which means that Greece needs to act fast if it wants to be a part of these Iranian business interests.

At this stage, Greek officials are believed to be considering either an expansion of an existing ELPE refinery in Thessaloniki or development of a new one in Thrace, in the country’s northeast.

The Iranian proposal for business in Greece is not linked to outstanding debt owed by ELPE to NIOC as a result of lingering banking restrictions in Iran following the lifting of the western-imposed trade sanctions early this year.

Iran is now ready to start supplying LNG. Last month, following a meeting between Iran’s oil minister Bijan Namdar Zangeneh and Bulgarian energy minister Temenuzhka Petkova, Bulgarian media reported that Zangeneh expressed an interest to start supplying Iranian LNG to Greece and Bulgaria once the IGB (Interconnector Greece Bulgaria) project is completed.  The Iranian minister also stressed Iran’s interest to help develop the Alexandroupoli LNG station.

NIGC’s registration for an oil and gas conference in Athens on September 28 is indicative of Iran’s interest. The event will provide Iranian officials with the opportunity to hold crucial talks at political and entrepreneurial levels.

Iran displaying two-pronged interest in the Greek market

Posted on by admin

Iran, active on the global energy circuit after being sidelined for years as a result of western-imposed sanctions, is expressing an interest to participate in the development of a prospective floating LNG station in Alexandroupoli, northeastern Greece, through NIGC, the National Iranian Gas Company, while a proposal has already been extended by NIOC, the National Iranian Oil Company, to ELPE (Hellenic Petroleum) for joint development of a new refinery in Greece.

Now ready to start supplying LNG, Iran is seeking distribution channels and customers. Last month, following a meeting between Iran’s oil minister Bijan Namdar Zangeneh and Bulgarian energy minister Temenuzhka Petkova, Bulgarian media reported that Zangeneh expressed an interest to start supplying Iranian LNG to Greece and Bulgaria once the IGB (Interconnector Greece Bulgaria) project is completed.  The Iranian minister also stressed Iran’s interest to help develop the Alexandroupoli LNG station.

Iran is considering taking its interest in the Alexandroupoli LNG station a step further by examining the prospect of acquiring a stake in the venture, energypress has been informed. NIGC’s registration for an oil and gas conference in Athens on September 28 is indicative of this interest. The event will provide Iranian officials with the opportunity to hold crucial talks at political and entrepreneurial levels.

As for the oil sector, Iran’s interest in acquiring a stake in ELPE, a move supported by the country’s oil ministry, emerged at the beginning of this year through statements conveyed by Iranian state-run news agencies.  The prospect has been linked to settlement of ELPE debt owed to NIOC. ELPE officials have not taken the proposal any further despite a reference on the matter by Greece’s minister for foreign affairs Nikos Kotzias during a visit to Tehran.

Iranian officials have made clear their interest for the joint development of a new refinery in Greece, which would primarily serve Iranian export needs. This proposal has been looked into by Greek officials. Two options are being examined, one for the expansion of an existing facility in Thessaloniki, the other the construction of a new unit in Thrace, Greece’s northeast. This Iranian proposal has not been linked to ELPE’s debt owed to NIOC.

Iranian state companies are expecting to receive billions of euros in payments from various countries as a result of lingering banking restrictions in Iran, despite the lifting of sanctions early this year. Iran plans to invest some of this money into production units facilitating the country’s oil and gas exports. Besides Greece, development of units in Bulgaria is also being examined.

Foreign crude suppliers still distrustful of Greek banks

Posted on by admin

Foreign crude suppliers and traders exporting to the Greek market are continuing to display little, if any, confidence in Greek banks, despite the fact that the latter have been recapitalized for a third time. ELPE (Hellenic Petroleum) is experiencing this continued distrust first-hand, on a regular basis.

Companies such as Iran’s NIOC, the state-run oil company, Russia’s Vitol, as well as Saudi Arabian suppliers, all of which regularly trade with ELPE, are not accepting letters of gurantee issued by Greek banks for their dealings with the Greek refinery.

ELPE has been forced to have letters of guarantee issued by Credit Suisse as well as a Dutch bank, sources informed.

Despite the wider distrust, a visiting Iranian delegation led by the country’s deputy foreign minister Majid Takht Ravanchi did express an interest to increase trade with ELPE during a series of meetings yesterday with Greek government officials, including energy minister Panos Skourletis, economy, infrastructure, shipping and tourism minister Giorgos Stathakis, and alternate foreign minister Nikos Xydakis.

Ravanchi noted that he would like Iranian crude supply to ELPE to increase from the current level of two million barrels per month to three million. ELPE’s NIOC’s crude supply to ELPE had reached four million barrels per month prior to the western-imposed sanction on Iran, lifted early this year after being implemented in 2011. Ravanchi and his team also expressed an interest for greater Greek-Iranian cooperation in the petrochemical, LNG and renewable energy sectors.

In response, Greek officials suggested that more flexible credit terms by Iran and acceptance of letters of guarantees issued by Greek banks would help increase trade between the two sides.

ELPE is currently forced to make instant cash payments for orders delivered by NIOC as well as all other suppliers from abroad, including Russia’s Vitol, an old trading partner.

 

ELPE expecting two more Iranian crude shipments in May

Posted on by admin

ELPE (Hellenic Petroleum) expects to receive two further shipments of Iranian crude from NIOC, the state-run National Iranian Oil Company, in mid-May, each one of these comprised of one million barrels, following the arrival of a first shipment at the Greek refinery’s port facilities just days ago.

That delivery, which arrived last Thursday, represented the first shipment of Iranian crude to reach Europe following the recent lifting of western-imposed sanctions on Iran.

Once the additional two shipments have been delivered to ELPE, the refinery will have received three million barrels of Iranian crude, increasing ELPE’s crude imports from the country to a level of between 22 and 25 percent of its total crude imports.

An ELPE official recently noted the refinery could double its quantity of Iranian crude orders if price levels permit.

Payment of last week’s first shipment received by ELPE needed to be made via BCP, a Turkish-linked bank in Switzerland, as a result of lingering banking restrictions n Iran.

The Swiss group Borak holds a 69 percent share of BCP, while the other 31 percent is controlled by the Turkish bank Yapi ve Kredi Bankasi, belonging to Turkish corporate giant Koc Holding. Over 9 percent of Turkish exports are represented by Koc Holding, comprised of over 100 companies that employ roughly 90,000 persons.

ELPE officials contended that the Greek refinery is one of NIOC’s few customers that have made a payment for orders in the post-sanctions era, noting that other clients may have resorted to credit.

Iranian crude is highly appropriate for the needs of ELPE’s refineries as they were initially designed based on the assumption that Iran would be a key supplier.

 

ELPE expecting first European shipment of Iranian crude today

Posted on by admin

ELPE (Hellenic Petroleum) is expecting to receive today its first shipment of Iranian crude from NIOC, the state-run National Iranian Oil Company, following the recent lifting of western-imposed sanctions on Iran.

The order also represents the first shipment to arrive in Europe, Yiannis Psychogios, ELPE’s general manager for supply, refining and sales, informed during a speech delivered at an event organized by IDIS, the Institute of International Relations.

The ELPE official expressed optimism about the new prospects and conditions generated by the lifting of the western-imposed sanctions on Iran. Psychogios pointed out that Iranian crude is highly appropriate for the needs of ELPE’s refineries as they were initially designed based on the assumption that Iran would be a key supplier.

Prior to the sanctions, Iranian crude imports covered about 25 percent of ELPE’s needs. The corporation aims to soon reach this level again and possibly surpass it. Psychogios explained that the price offered by NIOC for Iranian crude would determine order quantities. They could be doubled if the price is right, he added.

Trading ties between ELPE and NIOC stretch back 30 years. The incoming shipment, marking the resumption of trade by the two sides, will consist of about one million barrels of Iranian crude. These will be split between ELPE and the French company Total. Two follow-up shipments are expected next month.

The return of Iran to the international oil market has also led to indirect benefits for Greece as a result of the increase in competition among suppliers, noted Psychogios, while adding that rival crude suppliers from Saudi Arabia and Russia are now offering more favorable deals. “It’s a buyer’s market,” Psychogios said.

This development could have a positive impact on ELPE’s financial performance and prompt further investments, the official said.

Commenting on an outstanding some owed until recently by ELPE to NIOC, Psychogios contended that it had resulted as ELPE was not required to make advance payments for orders because of the friendly trading terms between the two firms. The arrival of the western-imposed sanctions, which created banking restrictions in Iran, made it impossible for ELPE to settle the amount owed at the time, he said. The issue was resolved two-and-a-half months ago with favorable terms for ELPE, Psychogios informed.

 

Iran still keen on ELPE stake; doubts expressed over new supply deal

Posted on by admin

An interest by Iran’s Tadbir Energy Development Group to acquire a stake in ELPE (Hellenic Petroleeum), already discussed between Greek and Iranian government officials without any further progress, has been reiterated by Iranian officials, Iranian state media has reported.

The Greek state, which controls 35.5 percent of ELPE, has neither indicated any interest in such a development nor ruled it out.

Iranian government and oil officials have also slightly increased the level of an outstanding amount expected from ELPE (Hellenic Petroleum) for a sum owed to NIOC, the state-run National Iranian Oil Company, while some reservations have been expressed over the prospects of a recent crude supply deal reached between the two sides, Iranian state media noted.

According to Iranian media reports, Iranian officials put the outstanding amount owed by ELPE to 755 million dollars (approximately 680 million euros), up slightly from 650 million euros, based on a figure provided by an ELPE official.

The outstanding amount had resulted from banking restictions caused by the now-lifted western-imposed sanctions on Iran.

According to the ELPE official, the latter amount was agreed on when the two sides recently signed a Memorandum of Understanding (MOU), relaunching trade following the end of sanctions on Iran.

ELPE has already provided a first installment of 100 million euros, as had been agreed to by the two sides, while any difficulties that may be confronted by the Iranian company in receiving payments should be linked to lingering banking issues in Iran, following the sanctions, the ELPE official contended. ELPE cannot be held responsible should this be the case, the company official added.

According to the MOU, ELPE’s repayment to NIOC will be made over a four-year period through installments, supply of petroleum products, such as fuel and diesel, as well as engineering services to be provided by Asprofos, an ELPE subsidiary firm.

The initial overall enthusiasm generated by the recent agreement signed between ELPE and NIOC was somewhat dampened by the reservations expressed by NIOC managing director Roknodin Javadi as to whether the agreement can be entirely carried out.

Although a first shipload of Iranian crude ordered by ELPE is expected to arrive soon in Greece, Javadi, in comments to Iranian state media, noted: “We need to see how ELPE will respond to previous obligations before we can proceed with any further dealings.”

 

 

 

ELPE places first Iranian crude order after trade restart

Posted on by admin

ELPE (Hellenic Petroleum) has placed its first order for one million barrels of crude oil from NIOC, the state-run National Iranian Oil Company, due for arrival within the next few weeks, following the recent lifting of western-imposed sanctions on Iran.

The Greek refinery’s order was finalized yesterday after certain banking restrictions, still affecting trade with Iran despite the end of sanctions, were overcome.

The shipload carrying ELPE’s order is expected to arrive within March, a leading company official confirmed yesterday in comments to energypress.

ELPE’s agreement with NIOC, reached just weeks ago, allows the Greek refinery to order at least two million barrels of Iranian crude per month. This could cover 25 percent of the Greek refinery’s crude oil needs. Order amounts will depend on NIOC’s prices, revised monthly. If not competitive, ELPE may continue ordering from other suppliers, such as Libya, Iraq, and Saudi Arabia.

ELPE to seek reduction of debt level in first half

Posted on by admin

ELPE (Hellenic Petroleum) will seek to reduce its debt level during the first half of 2016, basing its decision on high profitability figures just reported by the corporate group.

The Greek refinery will strive to settle a 400-million euro bond expiring in May, as well as a further 200 million euros of roughly 550 million euros in total owed to NIOC, the state-run National Iranian Oil Company.

The outstanding amount owed to NIOC, prompted by banking restrictions caused by the now-lifted sanctions imposed by the west on Iran in 2011, needs to be fully paid by 2019.

ELPE will seek to reduce the corporate group’s substantial debt as neither the Greek state, which controls 35.5 percent of the company, nor the Latsis group, which owns a 42.6 percent equity share of ELPE through Paneuropean Oil, intend to pursue an increase in share capital.

ELPE’s total debt amounts to 3.3 billion euros, analysts were informed yesterday afternoon, when the company’s latest financial results were reported. Nearly half of this amount concerns short-term loans. The remainder is comprised of mid-term and long-term loans as well as bonds.

The company’s monthly needs for servicing its debt are estimated at 40 million euros.

 

ELPE seeking to clear Iranian banking hurdles to pay NIOC

Posted on by admin

ELPE (Hellenic Petroleum) is seeking to overcome restrictions still stifling Iran’s banking system, despite the recent lifting of western-imposed trade sanctions on the country, in order to pay a first installment, worth 100 million euros, for debt owed to NIOC, the state-run National Iranian Oil Company.

An outstanding amount of 600 million euros owed by ELPE to NIOC resulted from the banking restrictions caused by the sanctions, when they were imposed on Iran in 2011.

Iran’s banking system has yet to become fully operational since the end of the sanctions, making it difficult to transfer amounts to banks in the country.

ELPE is contemplating various options, including the establishment of a joint account with NIOC, a solution that could facilitate the Greek refinery’s payment to NIOC.

The first installment of 100 million euros will be broken up into three parts, as the amount concerns three different invoices issued by NIOC.

“We have not yet found a solution on how to deliver the first installment. Iranian banks are still blocked. Problems continue to exist when trying to transfer capital into the country. We’re examining various options,” an ELPE source told energypress.

ELPE and NIOC recently reached an agreement to recommence trading. Settlement of the Greek refinery’s outstanding amount was a key factor in the deal.

The Greek refinery is waiting for the right moment to place its first order as the considerable overall interest being expressed by western refineries for Iranian crude oil, now that the country is back in the international market, could influence price levels. NIOC will be resetting its price levels monthly.

ELPE’s new agreement with NIOC allows the Greek refinery to order at least two million barrels of crude per month. This could cover 25 percent of the Greek refinery’s crude oil needs, if Iranian price levels are viewed as competitive at ELPE. Otherwise, ELPE will continue ordering from other suppliers, such as Libya, Iraq, and Saudi Arabia.

 

ELPE first payment to NIOC for debt settlement within 10 days

Posted on by admin

ELPE (Hellenic Petroleum) plans to make a 100 million-euro payment to NIOC, the state-run National Iranian Oil Company, over the next ten days, as the first installment for debt worth 600 million euros. The outstanding amount resulted from banking restrictions caused by the western-imposed trade sanctions imposed on Iran in 2011.

The upcoming ELPE payment is one of the conditions set for the resumption of crude oil supply by NIOC to the Greek refinery, now that the trade sanctions have been lifted.

The first shipment is expected to be received within March, or early April. An imminent visit to Athens by NIOC officials is being planned for discussions on certain details concerning the new deal reached between the two sides. Further trading potential will also be examined.

Now set to once again be supplied Iranian crude, ELPE will need to cut back on supply from other sources. A reduction in crude orders from countries such as Libya and Iraq is likely, but final decisions concerning the countries and amounts still need to be made. These will depend on the crude prices to be offered by NIOC.

Based on the fresh deal just reached between ELPE and NIOC, the Greek refinery will be entitled to receive at least two million barrels of crude oil from Iran per month. This would cover 25 percent of ELPE’s needs. However, NIOC will need to offer competitive prices if orders of such levels are to be made by ELPE. The Iranian company will set its crude prices every month and ELPE will decide accordingly.

Meanwhile, Brent prices rose to 31.01 dollars a barrel last night, up 2.28 percent. Earlier in the day, Iran’s oil minister Bijan Zangeneh had announced that Tehran is ready to negotiate with Saudi Arabia, considering the current conditions in international oil markets. On the contrary, the WTI fell to 27.58 dollars a barrel last night, down by 1.29 percent.

The International Energy Agency (IEA) has forecast that OPEC will not reach an agreement with other producers to reduce oil output. According to the agency, the lifting of the sanction on Iran, combined with OPEC’s inability to reduce output will increase global oil reserves and prompt a further price fall.

NIOC to supply ELPE at least 2m barrels of crude a month

Posted on by admin

Greek refinery ELPE (Hellenic Petroleum) will be supplied at least 20 percent of its overall crude needs, or two million barrels per month, by NIOC, the state-run National Iranian Oil Company, it has been revealed.

NIOC, set to resume international trade following the recent lifting of western-imposed sanctions on Iran, is pushing to secure an even greater supply deal with ELPE, as was made clear during a meeting yesterday in Tehran between the head officials of the two companies.

It has also become known that the final agreement between the two companies specifies NIOC’s first crude oil delivery to ELPE will be made within the next two months.

Also, an older 600 million-euro debt amount owed by ELPE to NIOC, prompted by banking restrictions caused by the trade sanctions imposed on Iran in 2011, will be repaid over a four-year term, it has been confirmed. A first installment has been set at 100 million euros.

In addition, 50 percent of ELPE’s debt owed to NIOC will be covered through the supply of finalized products, while a further 10 percent of the debt figure will be settled through the provision of engineering services to be offered by Asprofos, an ELPE subsidiary firm, for Iranian refinery unit revamps.

ELPE, part of mission in Tehran, to sign NIOC deal today

Posted on by admin

Officials representing ELPE (Hellenic Petroleum) and NIOC, the state-run National Iranian Oil Company, are set to endorse a recent agreement reached between the two sides at a ceremony in Tehran today, marking the resumption of bilateral trade following the lifting, just weeks ago, of western-imposed sanctions on Iran.

A 70-member Greek delegation headed by Prime Minister Alexis Tsipras and energy minister Panos Skourletis, has arrived in Tehran to discuss prospective additional business deals over the coming days, including in energy.

Besides ELPE managing director Grigoris Stergioulis, the Greek delegation includes Theodoros Kitsakos, chief executive at DEPA, the Public Gas Corporation, and Panagiotis Kanellopoulos, chief executive of M&M Gas, a wholesale trading venture involving the Mytilineos Group and Motor Oil Hellas.

Unlike the ELPE boss, the DEPA and M&M Gas officials have not traveled to Iran to sign deals but to explore future possibilities. Iran boasts the world’s second largest quantity of natural gas desposits, following Russia.

Based on infrastructure plans, it is anticipated that Greece will be able to supply Turkey and fellow European countries between 10 billion and 20 billion cubic meters of natural gas annually by 2020.

For the time being, the ELPE-NIOC agreement is at the forefront of Greek-Iranian energy developments. Many of the deal’s details have already been disclosed in recent reports.

ELPE expects to cover between 20 to 30 percent of its daily crude needs through Iranian supply. The exact proportion remains to be announced.

The Greek refinery’s repayment of outstanding debt owed to NIOC as a result of banking restrictions prompted by the sanctions on Iran in 2011, estimated at 600 million euros, will be settled over a four-year period to expire in 2019.

Also, the Greek company will cover 50 percent of its debt owed to NIOC through the supply of an equivalent amount of finalized products. It is not yet clear whether these products will be sold directly by ELPE to NIOC or through traders.

In addition, a further 10 percent of the debt amount will be covered through engineering services to be offered to Iran by Asprofos, an ELPE subsidiary firm. The work may include refinery unit revamps.

Various other details, including the credit period’s duration, are expected to be settled at a meeting today between the ELPE and NIOC chiefs.

It remains to be seen whether Iranian officials will reiterate their interest to acquire an equity share of ELPE. Just weeks ago, Iran’s deputy oil minister Amir Hossein Zamaninia, speaking on Iranian state radio, noted Iran is keen to acquire an equity share of ELPE. At the time, ELPE sources responded by claiming that the issue had not been raised during talks with Zamaninia in Athens. Skourletis, Greece’s energy minister, backed these ELPE claims.

The Greek state holds a 35 percent stake in ELPE. It has been transferred to TAIPED, the State Privatization Fund. The Latsis group, which owns a 42.6 percent equity share of ELPE through Paneuropean Oil, has officially rejected any chance of selling its interests in ELPE.

Top Greek officials, including PM, in Tehran from Sunday

Posted on by admin

The recent agreement reached between ELPE (Hellenic Petroleum) and NIOC, the state-run National Iranian Oil Company, for a resumption of trade following the lifting of western-imposed sanctions on Iran, will be sealed over the next few days, when a Greek delegation to be headed by Prime Minister Alexis Tsipras travels to Tehran for an official visit beginning on February 7.

Besides the signing ceremony for the deal, expected to be a triumphant occasion, a wider effort will be made by Greek officials to re-establish business ties with Iran in various fields.

ELPE and NIOC recently reached an agreement on the payment terms for a 600 million-euro outstanding amount owed by the Greek refinery to the Iranian company as a result of banking restrictions prompted by the sanctions on Iran in 2011.

The Greek company, as has been previously reported, will cover 50 percent of its debt owed to NIOC through the supply of an equivalent amount of finalized products, such as auto diesel and fuel. Also, a further 10 percent will be covered through engineering services to be offered to Iran by Asprofos, an ELPE subsidiary firm.

In monetary terms, ELPE will export finalized products worth 300 million euros and engineering services worth 60 million euros, which adds up to 60 percent of the 600 million-euro amount owed to NIOC.

ELPE expects to cover between 20 to 30 percent of its daily crude needs through Iranian supply, once trade recommences. This is expected in March or April.

Certain details remain unresolved, such as the credit period to be granted by NIOC to ELPE for new supply. The Iranians have asked for a one-month period. ELPE prefers two months.

ELPE’s supply of 300 million euros worth of finalized products, as part of the payback deal, should help the Greek refinery get its foot in the door of the enormous Iranian economy.

It remains unknown whether Iranian officials will reiterate their interest for a stake in ELPE during the PM-led Greek delegation’s visit. Just days ago, Iran’s deputy oil minister, Amir Hossein Zamaninia, speaking on Iranian state radio, noted Iran is keen to acquire an equity share of ELPE.

ELPE officials have said that such a prospect was not raised during Zamaninia’s recent visit to Athens. Greek officials closely linked with Greek energy minister Panos Skourletis have informed that the Greek state has no intention of reducing its stake in ELPE.

The Greek state holds a 35 percent stake in ELPE. It has been transferred to TAIPED, the State Privatization Fund. The Latsis group, which owns a 42.6 percent equity share of ELPE through Paneuropean Oil, has officially rejected any chance of selling its interests in ELPE.

Certain market officials believe Tehran’s expressed interest in ELPE may be part of the negotiating tactics being applied by Iran with the aim of getting the country back into the European market following the recent lifting of sanctions.

At present, Iran is negotiating lower-priced crude supply deals with countries such as Greece, Italy and France. The country is also seeking to invest capital in Europe with the aim of generating Iranian crude sales and motivating countries to settle respective outstanding debt amounts owed to Iran as a result of the embargo, as was the case with Greece and the aforementioned 600 million euros.

ELPE to service 40% of NIOC debt with finalized products

Posted on by admin

Greek refinery ELPE (Hellenic Petroleum) will cover at least 40 percent of debt owed to the Iranian state-run National Iranian Oil Company (NIOC), estimated at 600 million euros, through supply of an equivalent amount of finalized products such as auto diesel to NIOC, the two sides agreed on Friday, it has been revealed.

An agreement on the outstanding amount owed by ELPE, prompted by banking restrictions that came with the western-imposed trade sanctions on Iran in 2011, needed to be found before the two sides could resume trading, now that the international sanctions have been lifted. The total debt amount owed by ELPE is scheduled to be repaid over a four-year period.

The measures imposed on Iran led to the gradual dilapidation of crucial infrastructure, including the country’s refineries. The deal will open the door for ELPE to Iran, a country with a population of 80 million, 70 percent of which is under the age of 35 and eager for consumption. Car sales in Iran are predicted to soon rise sharply, which will prompt a hefty auto fuel demand increase.

Details concerning the agreement last Friday between ELPE and NIOC – the first to be reached between Tehran and a western-world enterprise since the lifing of sanctions just over a week ago – have not been officially revealed following a request made by Iranian officials, energypress has been informed. NIOC is currently also engaged in similar talks with a range of oil companies, including BP and Shell, which also owe significant amounts to NIOC from the pre-sanctions area.

It has become known that ELPE’s deal with NIOC will cover 25 percent of the Greek refinery’s crude needs. The Iranian company is expected to begin exporting crude quantities of about 75,000 to 80,000 barrels a day to ELPE as of February or March. Last year, ELPE’s three refineries, in Aspropyrgos, Elefsina, and Thessaloniki, were supplied about 300,000 barrels of crude on a daily basis from various other sources.

Besides the new crude supply deal with Iran, ELPE also maintains a long-term deal with Saudi Arabia. The remainder of the refinery’s needs is covered via traders linked with Iraq, Russia, Libya, Kazakhstan, and Egypt. Last year, these countries, including Saudi Arabia, provided ELPE’s refineries with 13 million tons of crude.

ELPE, Iran’s NIOC strike deal for immediate crude oil supply

Posted on by admin

Greek oil refinery ELPE (Hellenic Petroleum) struck a long-term crude supply deal with the state-run National Iranian Oil Company (NIOC) in Athens today following a series of meetings in the Greek capital and Tehran.

NIOC, now back in the international picture following last Sunday’s lifting of western sanctions imposed on Iran in 2011, will immendiately begin supplying crude to ELPE, according to a statement released following today’s between top-ranked officials representing both sides.

ELPE and NIOC, old trading partners, forged a new deal after agreeing on the level and payback terms of a disputed amount owed by the Greek refinery to NIOC from prior to the western-imposed sanctions. The amount had been left unpaid as a result of the suspension of banking transactions when the sanctions were imposed on Iran. Factors such as fluctuating exchange rates had prompted the dispute as to the actual amount owed.

Prior to today’s agreement, ELPE had contended the amount was worth roughly 600 million dollars. The final amount agreed to was not disclosed in the statement released following the deal. ELPE’s administration expressed satisfaction over the deal, noting it is mutually beneficial.

Iran was supplying between 20 and 30 percent of Greece’s crude oil needs before being barred from international trade as a result of the sanctions.

Greek-Iranian meeting for oil debt, supply deal this Friday

Posted on by admin

Greek officials are scheduled to commence negotiations with Tehran for a new well-priced crude supply deal as well as debt settlement of older orders pre-dating the western-imposed sanctions on Iran.

Indicative of Iran’s interest to secure a new crude supply deal in Greece, the country’s deputy oil minister, Amir Hossein Zamaninia, will visit Athens this Friday, just five days after the lifting of sanctions on Iran.

The Iranian official will hold talks with his Greek counterpart Panos Skourletis as well as ELPE (Hellenic Petroleum) managing director Grigoris Stergioulis. The Greek refinery contends the debt figure owed to Iranian state-run National Iranian Oil Company (NIOC) is worth under 600 million dollars. The level is disputed by the two sides. A follow-up round of talks is expected to take place in Tehran next week.

Prior to the western-imposed sanctions on Iran, ELPE and fellow Greek refinery Motor Oil were supplied an average of 100,000 barrels of Iranian crude daily, covering 30 percent of the local market’s needs.

New supply deals with established trading partners, such as the Greek companies, as well as firms in Italy, will pave the way for Iran’s wider new dealings in the European Union. A new supply deal would also benefit Greece. Besides the relatively lower crude prices expected to be offered by Iran, the Greek government will surely talk of having succeeded to actualize its already-declared multi-dimensional energy policy.

However, Greece will first need to settle the outstanding debt amount before the Iranian state-run National Iranian Oil Company (NIOC) may consider resuming crude supply to ELPE and Motor Oil.

Based on the euro-dollar exchange rate at the time of the western-imposed sanctions on Iran, which disrupted international banking transactions for payments to Iranian companies, the amount owed by the two Greek refineries was around 800 million dollars.

According to an ELPE official, it remains to be seen whether Iranian officials will base the outstanding debt on older current exchange rates, and whether charges for the delayed payment will be added to the bill.

Athens will push to discuss the issue in quantitative terms and in dollar-based terms as prices have dropped drastically in recent years.

The negotiations are expected to be a lengthy, complex and politically shaded process. ELPE officials said a Greek proposal will be tabled during Friday’s talks for the establishment of a committee to focus on the issue.

Preliminary talks between Greek and Iranian officials had begun many months prior to the lifting of the sanctions on Iran. News had leaked that the debt settlement could entail NIOC acquiring a stake of ELPE. It had been said that Iran did not want the money owed to NIOC to enter the country, prefering instead that it remains abroad in the form of investments. The Latsis Group, which controls 42 percent of ELPE, had denied these reports. The Greek state, which holds a 35 percent stake in ELPE, had not.

 

 

 

Greek mission to Iran returns with far less than expected

Posted on by admin

The aspirations of ELPE (Hellenic Petroleum) to resume crude oil orders from Iranian state-run National Iranian Oil Company (NIOC) once western-imposed sanctions against the country, valid since 2012, are lifted now appear to be far more challenging than originally thought.

A Greek delegation, headed by Foreign Minister Nikos Kotzias and including ELPE managing director Grigoris Stergioulis, returned from a trip to Tehran earlier this week with serious issues to resolve if crude supply by NIOC to ELPE is to resume.

Though ELPE officials have not made any comments, it appears NIOC has toughened its terms. According to a Bloomberg report, ELPE will first need to settle an outstanding debt amount, whose level is disputed by the two sides, before the Iranian company considers resuming crude supply to the Greek refinery.

Prior to the Greek delegation’s business trip to Iran, ELPE was aiming to secure supply of four million barrels of Iranian crude per month, a level now seen as overambitious.

According to energypress sources, Greek officials fear NIOC is feeling the strain of the fallen crude price level, now down to 40 dollars a barrel, and will demand settlement of the outstanding amount owed by ELPE to the Iranian company before trade resumes, and, furthermore, also push for prepayment of future orders.

Prepayment is a commonly applied demand by suppliers feeling powerful, such as state-run companies in the Persian Gulf. On the contrary, Russian and Iraqi suppliers are willing to accept settlement of order amounts 30 days after delivery.

Although it is still too early to draw any conclusions, certain sources claim ELPE will exclude Iran from its new and revised business plan.

Besides its crude oil supply, Iran is an appealing investment prospect in the international business community, now that the international sanctions appear set to be lifted early in 2016. This week’s visit by the Greek delegation, featuring a total of 30 entrepreneurs, coincided with an Italian mission comprised of some 400 businessmen.

As for Iran’s crude supply sector, market officials believe the country has already reached agreements with many companies from the west for an amount five times over its capacity.

According to ELPE, the company’s debt owed to NIOC is estimated at between 500 million and 600 million dollars. Officials at the Iranian company consider Greek refineries owe a total of about 800 million US dollars. The Bloomberg report noted Iranian officials consider ELPE owes 755 million dollars and fellow Greek refinery Motor Oil a further 55 million dollars.

According to the Bloomberg report, Iranian company Tadbir Energy Development Group is interested in acquiring a stake in a Greek refinery, without specifying whether ELPE or Motor Oil is being targeted.

During the trip to Tehran, ELPE officials were reportedly asked whether the company is willing to sell an equity share of the corporate group. No further discussion on the matter was reported.

ELPE, Iran keen to resume trade despite debt dispute

Posted on by admin

A matter concerning outstanding debt owed by ELPE (Hellenic Petroleum) to the state-run National Iranian Oil Company (NIOC) after the international banking system had refused to complete a transaction covering an order received by ELPE when western-imposed sanctions against Iran took effect in 2012, was re-examined by ELPE managing director Grigoris Stergioulis in Iran, who joined Foreign Minister Nikos Kotzias on an official visit to the country this week.

The Greek officials visited the country as western-imposed oil and financial sanctions on Iran are expected to soon be lifted. ELPE is striving to secure four million barrels of Iranian crude per month, representing between 15 to 18 percent of the country’s production.

According to ELPE, the company’s debt owed to NIOC is estimated at between 500 million and 600 million euros. However, officials at the Iranian company consider the amount stands at 800 million US dollars, currently worth about 755 million euros.

Neither side is willing to stop progress towards a deal launching a resumption of trade as a result of the debt discrepancy, sources have stressed.

In the third quarter of this year, ELPE was supplied 65 percent of its crude by Russia and Iraq, ordering significantly larger quantities from these sources compared to last year. ELPE reduced its incoming supply of crude from Kazakhstan’s CPC pipeline. ELPE’s management intends to increase orders from Libya, Iran and Iraq.

Prior to the sanctions on Iran, ELPE’s crude orders from the country had exceeded 40 percent of the Greek refinery’s total orders. ELPE’s refinieries are set to work most efficiently with Iranian crude.

ELPE officials to revisit Iran as end of sanctions nears

Posted on by admin

ELPE (Hellenic Petroleum) is on stand-by to resume trade with Iran as the country prepares for western- imposed oil and financial sanctions to soon be lifted. Top-ranked ELPE officials are scheduled to travel to Tehran in several days.

The delegation, to be headed by ELPE managing director Grigoris Stergioulis, plans to be in Tehran for two days of meetings with officials of the state-run National Iranian Oil Company (NIOC) on November 29 and 30.

For quite some time now, ELPE has intended to secure a supply level of about four million barrels of crude per month from NIOC, once the sanctions are lifted, probably early in 2016, if Iran continues to comply with conditions agreed to for its nuclear program.

ELPE’s administration, recently appointed, has already visited Tehran once before and now plans to further consolidate trade plans discussed on the previous mission.

Major international players are focused on Iran’s expected return to trade. Over the past few months, officials representing all major energy companies have paraded through the country, the world’s fourth largest oil producer, in search of deals.

As for an outstanding amount owed by ELPE to NIOC for trading activity conducted prior to the sanctions, the most likely solution will entail payback in installments. The international banking system had refused to complete a transaction covering an order received by ELPE when the sanctions were imposed in 2012. The debt owed by ELPE exceeds 500 million euros.

ELPE team travels to Egypt in search of lower-priced crude

Posted on by admin

An ELPE (Hellenic Petroleum) team of officials plans to seek low-priced crude in the Egyptian market, without any trader markups. The ELPE delegation is scheduled to travel to Egypt today to secure better deals, without the intervention of middlemen, for 1.5 million barrels ordered by the Greek refinery from Egyptian suppliers each month.

The markup costs ELPE officials hope to avoid, currently at 0.50 dollars per barrel, are not negligible.

The trip to Egypt by ELPE officials comes as part of the company’s effort to reduce its operating costs amid an international market of fallen crude prices. After having already reduced the company’s trade-related operating costs by 28 percent, ELPE officials believe further cost-cutting capacity exists.

Besides their effort for better deals in Egypt, ELPE officials are also preparing to resume trade with Iran, the world’s fourth largest oil producer, as the country prepares to re-enter the international trading market in anticipation of the end of western-imposed oil and financial sanctions early next year. To do so, Tehran will need to maintain the west’s conditions demanded for its nuclear program. UN inspectors are expected to give the green light for an end to the western-imposed sanctions next month.

ELPE officials have already travelled to Iran for negotiations with the state-run oil company NIOC. ELPE managing director Grigoris Stergioulis has noted an agreement securing a quantity of as many as four million barrels of Iranian crude per month would be considered a good deal by the Greek refinery.

NIOC and ELPE are also engaged in talks to establish a payback program for debt in excess of 500 million euros owed by the Greek company to the Iranian producer. The amount stretches back to 2012, when the sanctions were imposed on Iran. The international banking system refused to complete a payment by ELPE for a crude order received from NIOC just ahead of the sanctions.

ELPE is scheduled to report its financial results for the nine-month period this week.