Hyundai Oilbank and SK Innovation (096770.SE), which fully owns the nation's other refiner, SK Energy, are considering Iran's offer, officials from both companies said Wednesday. Both companies imported crude oil from Iran until European Union sanctions that took effect July 1 effectively cut off insurance on Iranian crude shipments July 1. The South Korean refiners are considering using the ships of NITC, or National Iranian Tanker Co., they said. Hyundai Oilbank is negotiating the details--including the offer of insurance and the number of monthly shipments--with Iranian officials, the Hyundai Oilbank official said. An agreement may be reached by the end of the month, he said. Meanwhile, Hyundai Oilbank is waiting for the government, which apparently finds the Iranian proposal "acceptable," to give it its official blessing, he said. A government official who asked not to be identified told Dow Jones Newswires earlier this week that government officials were leaning toward accepting the Iranian insurance proposal but that it was "too early to say" whether it would be approved. In an effort to skirt EU ban on insuring ships carrying Iranian crude oil Tehran announced last week that it would insure any foreign ships that enter its waters. "The Islamic Republic of Iran will take all responsibility for insuring any foreign shipping line and any ship that enters Iranian waters," said Ataollah Sadr, the managing director of Iran's Ports and Maritime Organization. "The Islamic Republic of Iran has adopted measures with the cooperation of Iranian insurance companies," he said. A top Indian executive and industry source said Indian shipping firms will continue to transport Iranian crude even if limited insurance coverage leaves them financially exposed to a spill or accident, Reuters reported. Shipping Corp of India, which is the country's largest shipping firm, Great Eastern and other Indian tanker firms have asked state insurers to step in and provide up to $50 million in third-party liability coverage per tanker voyage. India's shipping companies would run the risk of shipping the crude even though they would be liable for any claims above $50 million in the case of an incident, industry sources said. mehr/281
A Hyundai Oilbank official has said Iranian officials have offered accident insurance coverage worth a maximum of $1 billion for Iranian tankers shipping Iranian crude oil to South Korea, according to Dow Jones.
News ID 182249
