S. Korea firms in talks to resume Iran oil imports

South Korean oil refiners are in talks with Iran to resume oil imports, officials said on Thursday, potentially by using Iranian tankers as a way to circumvent European Union sanctions.

Talks are currently under way with Teheran, officials of Hyundai Oilbank, SK Energy and Seoul’s knowledge economy ministry said.

Imports stopped entirely in July when an EU oil embargo on Iran over its nuclear program took effect, banning European firms from insuring Iranian oil shipments.

South Korea had relied entirely on European firms for such coverage but a Hyundai Oilbank spokeswoman said: “We are still hammering out details before finalizing the deal ... in a way to let Iran to take responsibility for oil tanker insurance”.

A spokesman for SK Energy, the other South Korean refiner which previously bought Iranian oil, confirmed the ongoing talks but refused to elaborate.

Seoul bought 9.4 percent of its crude oil from Teheran last year. It had been sharply reducing purchases this year in return for a waiver from separate US sanctions on Teheran.

An official of the knowledge economy ministry also said Seoul refiners were discussing with Teheran ways to resume imports, including letting the Middle East nation provide tankers or cover insurance for shipments.

“No firm date has been set when exactly it (oil imports) will resume though ... companies need time to hammer out details of contracts,” he told AFP on condition of anonymity.

Agence France-Presse