Date: 12 July 2019 , 23:40
News ID: 5139
NEWS SERVICE: ENERGY

Iran to sign first contract to barter oil for power plant restoration

Iran is to sign a contract with a Japanese company for the restoration of a power plant which will be financed through a barter mechanism involving Iran’s oil.
Iran to sign first contract to barter oil for power plant restoration

An official from Iran’s Energy Ministry said that the contract would see Iran barter its oil for “execution” of a restoration project in the Rey Power Plant, an old facility near the capital Tehran which needs renovation, reported Press TV.

Thermal Power Plants Holding Company (TPPH) of Iran CEO Mohsen Tarztalab said the contract would be worth €500 million and signed in the upcoming days.

“Next week a contract will be signed for funding the restoration of the Rey Power Plant through barter of oil for execution,” said Tarztalab, adding that mechanism has been allowed under a sub-article of an annual draft budget passed by the Iranian Parliament last year.

The oil barter contract would be a first for Iran, a country hit by US sanctions, which restrict its ability to both sell oil and receive its revenues in foreign currencies.

The sanctions began last year when Washington unilaterally withdrew from a 2015 international deal on Iran’s nuclear program.

Iran has rejected US claims that sanctions would reduce Iran’s oil exports to zero, saying Tehran would exhaust any possible channel to sell its oil to traditional customers.

The barter contract will come more than a month after Japanese Prime Minister Abe Shinzo, whose country has been a main buyer of Iran’s oil for the past decades, traveled to Tehran for a first visit by a Japanese head of state since Iran's Islamic Revolution in 1979.

source: Iran Daily
sanctions TPPH Rey Power Plant Energy Ministry oil
Top News
Sibanye-Stillwater liable for damages to Appian for .2 billion scrapped mine deals
Sibanye-Stillwater liable for damages to Appian for .2 billion scrapped mine deals
One last month
Mobarakeh Steel Co. record holder in quantitative and qualitative production
Mobarakeh Steel Co. record holder in quantitative and qualitative production
Seven last month
"Sustainability and innovation in production and development, excellence in culture", the orientation of Mobarakeh Steel Co. to realize the motto of 2024
Seven last month
Gianpietro Benedetti, Chairman of Danieli Group, passes away
Gianpietro Benedetti, Chairman of Danieli Group, passes away
Six last month
The entrepreneur Gianpietro Benedetti has died, he was 81 years old
The entrepreneur Gianpietro Benedetti has died, he was 81 years old
Six last month
The President visited the Sungun Copper Complex
The President visited the Sungun Copper Complex
Two last year
Most Like