Japan's JXTG may take Iranian oil for Dec loading at earliest -exec (updated)

Fuji Oil Co (Shinagawa)

07/11/2018 08:15

* JXTG weighs purchase after Japan granted waiver from
sanctions
    * Refiners such as Showa Shell, Fuji Oil also consider
purchase 
    * Govt has not instructed details on allowed import levels
-exec

 (Adds details)
    TOKYO, Nov 7 (Reuters) - JXTG Holdings  5020.T , Japan's
biggest oil refinery operator, is considering whether to resume
Iranian oil purchases after Japan was granted a waiver from U.S.
sanctions targeting Iran, Senior Vice President Yasushi Onoda
said on Wednesday.
    If it decides to resume purchases after taking into account
the economics of Iranian oil against other grades, the company
might be able to nominate crude from Iran for December loading
at the earliest, he told reporters during a briefing on JXTG's
six-month earnings.  urn:newsml:reuters.com:*:nXB02KIDMD
    "We do not have concrete plans for resumption," he said,
adding that loading and ship transport from Iran to Japan would
take about a month.
    The government gave the go-ahead for resuming Iran oil
imports, but did not give any information on the volumes that
would be allowed, he said.
    JXTG said in May that Iranian oil accounts for 4 percent to
5 percent of its total imports. Onoda said the halt in Iran oil
imports has narrowed its flexibility for oil procurement, but it
has been able to procure replacement oil with no impact to
stable oil supplies to Japan.
    Onoda said it cancelled loadings of Iranian oil for October
ahead of the start of U.S. sanctions in early November.
Considering that the United States gave the exemption until
early May, JXTG might have to halt Iran oil purchases again from
next April, he indicated.
    He added that it looked as though JXTG was likely to
overcome any issues with payment, insurance and vessels for
resuming Iran oil imports.
    Spokesman for other Iranian crude buyers Showa Shell Sekiyu
KK  5002.T  and Fuji Oil Co  5017.T  said the companies may
consider resuming purchases. 
    The United States granted exemptions to Iran's biggest oil
clients - Japan, China, India, South Korea, Taiwan, Italy,
Greece and Turkey - which allow them to import at least some oil
for another 180 days.  urn:newsml:reuters.com:*:nL4N1XH2F3
    Japan joined South Korea in temporarily halting Iranian oil
loading around mid-September.
    The country imported about 172,000 barrels per day (bpd) of
Iranian crude in 2017, down 24.2 percent from 2016, trade
ministry data showed. That accounted for 5.3 percent of total
crude imports.
    

 (Reporting by Osamu Tsukimori; Editing by Christian
Schmollinger)
 ((osamu.tsukimori@thomsonreuters.com, +813 6441 1857, Reuters
Messaging: osamu.tsukimori.thomsonreuters.com@reuters.net;))