National Iranian Oil Company (NIOC) is negotiating with the Philippines over exporting 4mb of crude per month to the country, Reuters reported.
This came as Philippines’ National Oil Company (PNOC), a member of a consortium of international companies, has already signed a non-disclosure agreement with the National Iranian South Oil Company (NISOC) for studies into two oilfields in Iran.
The group, known as Pergas, comprises eleven European, Canadian and Asian corporations in addition to the Sharif University of Technology, according to RT. Furthermore, PNOC’s CEO, Pedro Aquino, stated that the company has bought Iranian crude before and is currently considering resuming purchases.
Based on the deal, the consortium will have 6 months to hand over the result of its studies on the fields to the NISOC. Pergas may submit its proposal for development of the fields sooner if it is ready.
Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), has granted an exemption from the group’s production cuts agreed on in November. Therefore, the country is allowed to raise output slightly.
Iran, OPEC’s third-largest oil producer, exports more than 500,000b/d of refined products, mainly fuel oil, petroleum gas and naphtha to Asian markets. In addition, Sanctions were lifted in January 2016, under a deal reached between Iran and six major powers in 2015 aimed at curbing the country’s nuclear program.