By Jonathan Saul

LONDON, Jan 26 (Reuters) – Efforts by Iran to begin exporting oil to Europe are being held up as overseas tanker homeowners are nonetheless struggling to safe insurance coverage for cargoes, main transport gamers mentioned on Tuesday.

A nuclear deal between world powers and Iran earlier this month led to the elimination of curbs on Tehran’s banking, insurance coverage and transport sectors.

Since then, Iran has ordered a 500,000 barrel per day (bpd) improve in oil output, of which 200,000 bpd will go to Europe.

But many overseas corporations stay cautious of violating different sanctions that had been imposed by the United States and haven’t been lifted. Measures nonetheless in place from Washington prohibit most enterprise between U.S. individuals, U.S. firms and Iran in addition to no greenback trades.

Paddy Rogers, chief govt with tanker operator Euronav , mentioned his firm had been approached to hold Iranian oil to Europe.

“We have had enquiries. It is interesting that the first enquiries to move Iranian oil came from Europe not from China,” Rogers informed a Capital Link net convention.

Third-party legal responsibility insurance coverage and air pollution cowl for vessels is supplied by P&I golf equipment – marine insurers owned by transport shoppers and reinsured internationally.

Rodgers mentioned the umbrella International Group of P&I golf equipment had been nonetheless unable to substantiate funds below re-insurance contracts.

“It has not been cleared yet. So, nobody can load at the moment it seems to me … unless somebody has some alternative method of insurance,” he mentioned.

“I think this is going to come on. But it will take time and it won’t be very straightforward.”

Greece’s largest oil refiner Hellenic Petroleum agreed on Friday to purchase crude oil from state-owned National Iranian Oil Company, changing into the primary European refiner to restart commerce relations with Tehran.

Iran’s oil exports have fallen to only over 1 million bpd, from a peak of greater than 3 million bpd in 2011 – earlier than the imposition of harder sanctions.

Oil held by Iran on its home tankers in floating storage is estimated by transport sources to be not less than 40 million barrels because the nation struggles to dump provides due to a world glut.

Robert Hvide Macleod, chief govt with tanker group Frontline Ltd, mentioned he anticipated further Iranian exports of not less than 500,000 bpd this 12 months.

“They will do what they can what they can to get the European market back and there will be demand for international tonnage to handle this volume,” he mentioned.

Macleod mentioned the insurance coverage and fee system was nonetheless not there but, however added that it “will get in place in the short-term”.

Nikolas Tsakos, president and chief govt of one other main tanker participant Tsakos Energy Navigation Ltd, mentioned competitors between Iran and arch rival Saudi Arabia was anticipated to warmth up, additional boosting vessel demand.

“They are going to compete and are going to try to out produce each other,” Tsakos informed the decision. “That, of course will add supply in the market.” (Reporting by Jonathan Saul, modifying by David Evans)

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