The Sri Lankan government has begun talks with Iran on resuming oil shipments from the country, when sanctions are lifted as scheduled in early 2016.
Sri Lanka imported over 90% of it’s oil from Iran before international sanctions on Tehran came into its place, over its nuclear programme.
The head of the National Iranian Oil Company (NIOC) Roknoddin Javadi said that Iran was ready to resume shipments once the sanctions are lifted.
“Iran’s oil negotiations have started with Sri Lanka,” the Mehr news agency quoted him as saying.
“All the countries are serious about purchasing crude oil from Iran,” he said, adding “we believe we will have suitable conditions”.
Sri Lanka's only oil refinery is configured to run on Iranian light crude, which meant that the sanctions were particularly devastating for the country.
The facility’s switch to processing alternative crudes, from countries such as Oman, Saudi Arabia and the UAE has reduced the yield, with processed products from Oman light and Murban crude of Abu Dhabi coming out 20% lower than those from Iran light, due to the refinery's specification.
Do not import Iranian oil - US to Sri Lanka (03 January 2014)
Sri Lanka’s Iran oil sanctions exemption extended (30 Nov 2013)
Reuters – Sri Lanka ‘completely reliant on Iranian oil’ (09 January 2012)