Iran extends oil deal with Turkey for 2012 despite sanctions

Iran said on Saturday it has extended its crude export contract with Turkey for 2012, state-run English Language Press TV reported, suggesting it aims to trade via Turkey to circumvent tight sanctions imposed over its disputed nuclear programme.

Turkey has said it is complying with the sanctions, after trying unsuccessfully to mediate between Iran and the international community.

“The National Iranian Oil Co. has renewed its crude export contracts with a number of Turkish oil companies … by the end of 2012,” Press TV said in the report.

The report said Turkey was a potential market for the export of Iranian crude to Europe, and predicted the Islamic state’s crude exports to Turkey would rise by a third in 2012.

“In 2011, Turkey’s oil purchases from Iran was 150,000 barrels per day which is expected to rise to 200,000 barrels in 2012.”

The European Union is considering a ban – already in place in the United States – on imports of Iranian oil, although diplomats and traders say awareness is growing in the EU that such a ban could damage the bloc’s economy without doing much to undercut Iran.

Iran warned that any move to block its oil exports would more than double crude prices.

The West suspects Iran’s nuclear programme might be aimed at making atomic bombs, while Tehran denies this and says its nuclear development is entirely for peaceful ends.

Many foreign companies with capital and modern technology have been forced to pull out from the country’s lucrative energy sector because of the international sanctions.

Source: http://www.reuters.com/article/2011/12/24/iran-turkey-oil-idUSL6E7NO04920111224