Danish VLCC owners posed to reap benefits of Iran deal

Nuclear accord for Iran will give tanker carriers major opportunity to enter market for Iranian oil exports.
Nuclear accord for Iran will give tanker carriers major opportunity to enter market for Iranian oil exports.
Nuclear accord for Iran will give tanker carriers major opportunity to enter market for Iranian oil exports.

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The deadline for a deal between Iran and the six superpowers, the US, China, Russia, the UK, France and Germany has passed, with reports of a week-long extension, but the Danish Shipowners' Association in an analysis says a major opportunity for VLCC owners is drawing near.

The resolution of a nuclear accord for Iran will give tanker carriers a major opportunity to enter the market for Iranian oil exports, says the Danish Shipowners' Association in a release carried by Danish news media dr.dk.

"The combined stands at around USD 22.5 million annually for Danish carriers," says Jakob Ullegård, director of politics and analysis at the Danish Shipowners' Association.

Of particular interest is the LNG carrier sector. The LNG market has grown considerably since sanctions were imposed several years ago, at which time Iran was the world’s top LNG exporter. It is currently the fourth largest oil producer.

Analyst agency Woods Mackenzie recently published an analysis of how a repeal of the sanctions would impact Iran's oil and gas output.

According to the organisation, the country could raise its daily oil production ahead of 2020 from 2.7 million barrels of oil a day to around 4.4 million barrels - which corresponds to the level after 2006 when the last round of sanctions were imposed.

Woods Mackenzie says that this increase in production is likely to happen gradually with around 120,000 barrels extra toward the end of this year, and another 260,000 barrels in 2016 and 220,000 barrels in 2017.

The country's gas production also faces a boom. The report expects daily production by 2017 to have increased 2%, to around 24 billion cubic feet per day. In 2014 this figure was 19.3-billion.

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