OREANDA-NEWS. Iranian crude exports rose to 2mn b/d in April with surging deliveries to its largest customer base Asia, while shipments to Europe also rose as new buyers stepped in.

Iran's crude exports reached 2mn b/d in April, according to Argus tracking data, not including intra-Iran deliveries or condensate exports. This is up from crude exports of around 1.4 b/d in March, Argus estimates. The figures support forecasts made by Iranian officials last month.

If Iran can continue to build production — as it forecasts it will — in coming weeks that might pave the way for it to go to the Opec meeting on 2 June with its key pre-condition for considering an output freeze met. That, in turn, would meet Saudi Arabia's stated pre-condition for freezing — that Iran participates.

Iran's April export levels compare with 1.1mn-1.2mn b/d in the few months leading up to the lifting of US and EU sanctions. And April's export levels are roughly in line with where shipments were in the six months before the imposition of sanctions in July 2012, and only 300,000 b/d shy of the 2.3mn b/d it exported in 2010-11.

Three-quarters of April's crude exports went to Asia, namely China, Japan, India and South Korea. Exports to China rose close to 900,000 b/d, from around 500, 000 b/d the month previous.

Exports to South Korea rose by around 50pc month on month to around 100,000 b/d. Iran and South Korea agreed to [deepen energy co-operation] over the weekend, as South Korean president Park Guen-hye spearheaded a 230-strong business delegation to Tehran. Iran is hoping to boost crude and condensate sales to South Korea.

And 200,000 b/d was exported to Japan after no shipments set sail for there in March. Exports to India were just under 370, 000 b/d, declining by around 25pc month-on-month after a stronger export level in March. Indian refiners such as Reliance are also looking to secure [larger crude term supply] deals with Iran. Reliance, state-controlled IOC, state-controlled Hindustan Petroleum (HPCL) and Bharat Petroleum are keen to diversify their crude slate by importing Iranian crude, joining existing buyers MRPL and private-sector Essar Oil.

Iranian condensate went to South Korea, Japan and UAE, tracking data suggests.

Exports to Europe almost doubled month on month to around 200,000 b/d in April, but could be higher if a portion of cargoes whose destination is unclear also end up in Europe.

NIOC has supply deals with France's Total and Spain's Cepsa. Around 133,000 b/d set sail for France in April, and around 33,000 b/d to Spain. At the end of the month, Italian refiner Iplom — a lifter of Iranian crude prior to 2012 — also loaded its first post-sanctions cargo of 1mn bl or around 33,000 b/d, heading towards Italy.

Greek refiner Hellenic Petroleum, with which NIOC also holds a supply deal, received its first post-sanctions cargo of 1mn bl Iranian crude on 15 April, after it loaded at export terminal Kharg Island on 29 March. Hellenic may have loaded a second cargo aboard the New Trust, although this could not be confirmed as the transponder has been switched off since mid-April. Fellow refiner Greek refiner Motor Oil was heard to have fixed the Kriti Breeze vessel earlier in the month, which set sail from Kharg Island around 28 April and is currently headed towards the Suez Canal, but this fixture could also not be confirmed.

Meanwhile neighbouring [Turkey-bound exports] remained steady month-on-month at around 100,000 b/d.

NIOC also holds a term contract with Russia's Lukoil, although the firm was not seen lifting in April and has not loaded a cargo since February.

Iran's state-controlled NIOC has said further that it expects to sign agreements "soon" with Italian firms Eni and Saras for a combined 160,000-170,000 b/d.