Greece’s largest refinery Hellenic Petroleum has agreed to buy oil from the National Iranian Oil Co., marking the first sale of Iranian crude to a European country since the lifting of trade sanctions against the Middle Eastern nation.
The deal comes after Greek and Iranian officials met to discuss the strengthening of cooperation in the energy sector between Greece and Iran.
“Hellenic Petroleum and the National Iranian Oil Company (NIOC) have reached a long term agreement…” that “includes cooperation for the supply of crude oil, with immediate start of deliveries,” the Greek company said in a statement.
Oil prices plunged to 12-year lows under $28 this past week as markets reacted to the prospect of Iranian crude flooding onto already over-supplied markets after international sanctions imposed on Tehran over its nuclear programme were lifted at the weekend.
Iran ordered on Monday an increase in production of 500,000 barrels per day as it seeks to retake market share.
According to reports, before the imposition of sanctions HELPE relied on Iran for some 20 per cent of its oil, and owed over 500 million euros ($544 million) when sanctions meant it could no longer pay NIOC.
The deal includes the settlement of liabilities incurred before international sanctions imposed on Iran in 2011, according to the statement.
