‘Unprecedented’ US sanctions fail to affect Iran’s oil, LPG exports

‘Unprecedented’ US sanctions fail to affect Iran’s oil, LPG exports

The recent US sanctions on Iran's oil and LPG sales have not swayed exports, National Iranian Oil Co.’s Managing Director Hamid Bovard said May 9, despite describing Washington’s enforcement action since US President Donald Trump’s return to the White House as “unprecedented.”

As part of President Trump’s “maximum pressure” campaign to choke off Iran’s petroleum revenues since January, the US Treasury has sanctioned more than 30 tankers, some Chinese independent refineries, Iranian businessmen and various companies for facilitating Iranian oil exports.

S&P Global Commodities at Sea data shows the OPEC member’s crude exports reached 1.68 million b/d in April, even higher than the 2024 average of 1.57 million b/d.

Shipments to Chinese independent refineries, the largest Iranian crude buyers, averaged 1.72 million b/d in April, according to Platts data. Those were 10% lower than the all-time high of 1.91 million b/d in March, but 55% higher than 1.1 million b/d in the same period of last year.

LPG exports amounted to 387,000 b/d last month, also higher than 333,000 b/d on average in 2024, according to CAS.

“It’s the oil which has some problem with the sanctions. But our LPG has a lot of domestic and export customers. … We even have shortages in the product,” Bovard added.

The NIOC official said that the country has added over 150,000 b/d of oil to the country’s output in the past Iranian year, which ended March 20.

“We have targeted up to 250,000 b/d [of oil] for the current year and we need high-tech equipment ... to materialize this,” Bovard added.

He said private Iranian companies have been assigned to provide onshore and marine rigs under three- to five-year contracts worth more than $1.5 billion.

The oil production increase came despite Abouzar, one of Iran's Persian Gulf production platforms, running at around 30% of its usual capacity of 100,000 b/d for some time since November due to recurrent pipeline issues.

Citing Ahmadreza Rasti, managing director of National Iranian Offshore Oil Co., oil ministry news service Shana reported around 35,000 b/d ran through the 76-km (47.12 miles), holed pipeline connected to Abouzar as of May 7.

“We have cautiously lowered the production rate,” Bovard said. “A new pipeline will be installed in the coming months.”

Rasti said a new pipeline could start to be installed in early July and go on stream by March 2026.