KUALA
LUMPUR, March 24 — Datuk Seri Najib
Razak confirmed last night Malaysia’s halting Iranian oil imports to avoid US
sanctions.
But the
prime minister brushed off the impact of the decision to join a growing list of
buyers bowing to Western pressure to isolate Iran.
The US
State Department on Tuesday released the list of 12 countries that remain
potentially subject to sanctions beginning end of June unless they cut
shipments of Iranian oil. Malaysia was one of the 12 countries listed.
“We’re
not importing (anymore). It’s only a small amount,” he told reporters after
chairing an Umno supreme council meeting which ended close to midnight.
Reuters
had earlier yesterday cited a Petronas source as saying the state oil firm will
halt its import of 50,000 to 60,000 barrels per day of Iranian crude from April
and is already looking at alternative sources.
Malaysia
imports 350,000-400,000 bpd of crude oil and oil products and those volumes are
set to rise as the economy expands, industry sources told the news wire.
Most of
Petronas’ purchases of Iranian crude were for the 135,000 bpd Engen refinery in
South Africa, in which Petronas holds a majority stake.
South
Africa has already suspended almost all of its oil imports from Iran, a senior
diplomat said on Thursday. The Petronas source said Engen had stopped buying
any Iranian crude from March.
Another
10,000-11,000 bpd of Iranian crude were channelled to Petronas’ 180,000 bpd
Malacca refinery in Malaysia, a source told Reuters. Petronas holds a 53-per
cent stake in the plant, with the rest owned by US firm ConocoPhillips (COP.N).
Petronas
has bought Middle East crude cargoes from the spot market to replace the
Iranian crude for its Malacca refinery. It also purchased Angolan and Middle
Eastern grades for the South African refinery, Reuters reported.
Petronas
also recently renewed a term contract to buy up to two 730,000-barrel cargoes
of Russian ESPO Blend crude each month from TNK-BP (TNBP.MM) for two years.
China,
India, Japan and South Korea are the four biggest buyers of Iranian crude in
Asia and all are cutting imports. Iran sells most of its 2.6 million barrels
per day (bpd) of exports in the region.
European
Union sanctions have also made buying Iranian crude more difficult as they
penalise insurers for indemnifying Iranian crude cargoes anywhere in the world.
The
sanctions are intended to punish Iran for its controversial nuclear programme,
which the West believes is being used to develop weapons but which Iran says is
for peaceful purposes.
The
Malaysian Insider
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