Iran and its biggest oil customer China have agreed to alter the terms of their long-term oil deal to a delivered ex-ship, basis, so that Iran will cover all the costs and risk of delivering crude, along with handling the insurance for oil shipments. The move is in response to the China re-imposing sanctions on the Iranian country and differs from the previous free-on-board terms. The shift demonstrates that China, Iran’s biggest oil customer, wants to keep buying Iranian crude despite the sanctions, which were put back after the United States withdrew in May from a 2015 agreement to halt Iran’s nuclear program. In July , all 17 tankers chartered to deliver Middle Eastern oil to China were operated by Nam Kwong Group (NITC), with a load of about 767,000 barrels of crude.
Iran and its biggest oil customer China have agreed to alter the terms of their long-term oil deal to a delivered ex-ship, basis, so that Iran will cover all the costs and risk of delivering crude, along with handling the insurance for oil shipments. The move is in response to the China re-imposing sanctions on the Iranian country and differs from the previous free-on-board terms. In July , all 17 tankers chartered to deliver Middle Eastern oil to China were operated by Nam Kwong Group (NITC), with a load of about 767,000 barrels of crude.