Sinopec imported Iran crude at 2011 levels in May, official says
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Tehran Times - 13 June, 2012
http://gitm.kcorp.net/index.php?id=604949&news_type=Economy&lang=en

China International United Petroleum & Chemical Co., the trading unit of the
nation's biggest oil refiner, has boosted monthly crude imports from Iran to
levels similar to 2011, according to an official at the parent company.

Shipments from Iran received by the unit known as Unipec averaged 270,000 to
280,000 barrels a day in April and May, in line with last year, said the
official at China Petroleum & Chemical Corp., who declined to be identified
because of company rules. Imports fell in the first quarter after Unipec,
which accounts for half of China’s crude purchases from the Persian Gulf
nation, failed to agree on annual payment terms with National Iranian Oil
Co.

China, the biggest buyer of Iranian crude, faces U.S. sanctions because of
the purchases. India, South Korea, Turkey, South Africa, Malaysia, Sri Lanka
and Taiwan were given six-month exemptions from the sanctions because they
“significantly reduced” the volume they buy, U.S. Secretary of State Hillary
Clinton said in a statement. Japan and 10 European Union nations were
granted waivers in March.

U.S. President Barack Obama signed a bill on Dec. 31 that denies access to
the U.S. financial system to any foreign bank that processes payments for
Iranian oil. The sanctions are part of an attempt by Western nations to halt
the Islamic Republic’s nuclear program. A European Union embargo that
includes a ban on insuring tankers carrying Iranian crude takes full effect
starting July 1.

Cargo Request

China imports crude from Iran based on its economic needs and its trading is
“completely lawful and reasonable,” Liu Weimin, a Foreign Ministry
spokesman, told a briefing in Beijing.

Iran has asked to sell extra cargoes to China Petroleum, known as Sinopec,
according to the official, who also said Sinopec rejected the offer. Chinese
oil companies will be able to insure their ships carrying Iranian crude even
after the European Union embargo starts, the official said, without
elaborating.

Sinopec’s full-year purchases from the country will be about 20 percent less
than last year because of the first-quarter drop, and China’s total
deliveries from Iran will fall 15 to 20 percent, the official said.

China also imports Iranian crude via Zhuhai Zhenrong Co. Total deliveries
rebounded to 390,000 barrels a day in April from 254,000 in March after the
payment dispute was resolved, customs data show. China bought an average of
557,413 barrels a day from Iran in 2011, accounting for 11 percent of its
total purchases.