Sri Lanka to resume Iran oil imports; USD251mn oil debt to Iran

Iranian-oil

July 25, 2016 (LBO) – Sri Lanka is planning to resume oil imports from Iran following the removal of anti-Tehran sanctions, Iran’s petroenergy information network reported.

The network said following a meeting with Iranian Petroleum Minister in his Tehran office on Sunday, Sri Lanka’s Petroleum Minister Chandima Weerakkody has expressed hope that Colombo will resume oil and gas purchases from Iran.

Iranian Petroleum Minister Bijan Zanganeh said that Iran’s oil sales to Sri Lanka will resume as it used to export 40,000 barrels-per-day oil to the country prior to sanctions.

Zanganeh has pointed to Sri Lanka’s oil debt to Iran to the tune of 251 million dollars and said regarding implementation of the JCPOA, the ways of debt payoff should be clarified.

The Joint Comprehensive Plan of Action (JCPOA) known as the Iran deal, is an international agreement on the nuclear program of Iran, reached between Iran and the five permanent members of the UN Security Council.

Zanganeh said since debt settlement was stopped due to sanctions, the issue will be discussed in talks with the Sri Lankan party, hoping to reach a result.

He also said that Weerakkody is scheduled to visit gas and petrochemical facilities in Iran’s South Pars gas field which is Iran’s gas and petrochemical hub.

The sanctions were lifted on July 14, 2015, after Tehran reached an agreement on Iran’s peaceful nuclear program and started implementing it on January 16.