{"id":16533,"date":"2025-12-31T04:00:37","date_gmt":"2025-12-31T04:00:37","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=16533"},"modified":"2025-12-31T04:00:37","modified_gmt":"2025-12-31T04:00:37","slug":"nioc-sees-faster-payment-collection-amid-oil-price-decline","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/16533\/","title":{"rendered":"NIOC sees faster payment collection amid oil price decline"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Behzad Shamsi, chief financial officer of the National Iranian Oil Company (NIOC), said global oil prices have dropped about 21% in recent months compared with previous periods\u2014a significant decline. However, the oil ministry has partly offset the drop by boosting export volumes and reducing discounts.<\/p>\n

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Shamsi explained the current process for selling oil and repatriating the revenue: \u201cOil is delivered to buyers under contracts, and they are required to pay the proceeds into the country\u2019s banking system. The buyer must transfer the funds to a broker approved by the central bank at the designated bank. Once the approved broker reports receipt of the funds to the bank, the bank informs NIOC that the payment has been made. We then verify this with the central bank to ensure the oil revenue has been collected and deposited into the designated account.\u201d<\/p>\n

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Division of Responsibilities Between the Oil Ministry, CBI<\/strong><\/p>\n

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Shamsi emphasized that NIOC\u2019s role is limited to exporting oil and ensuring payment is made to the designated broker. \u201cAfter the funds are deposited, NIOC has no authority or responsibility over how the money is used or allocated,\u201d he said.<\/p>\n

He added that under the country\u2019s economic framework, the oil company handles exports and transactions, receives confirmation of deposits from the designated banks\u2014appointed monthly by the Central Bank of Iran\u2014and settles accounts with the central bank based on these confirmations.<\/p>\n

\u201cOver the past year, compared with the previous five years, we have achieved our best records in various aspects of oil exports,\u201d Shamsi said.<\/p>\n

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Reduced Discounts in Oil Sales<\/strong><\/p>\n

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Shamsi noted that daily export volumes reached their highest levels in the past year, while Iran\u2019s oil discounts hit their lowest in five years. \u201cSignificantly, the discounts on Iran\u2019s oil sales have decreased,\u201d he said.<\/p>\n

He also highlighted improvements in the timing of payments: \u201cThe period for receiving revenue from oil exports has been reduced by more than 40%, giving us better cash flow from oil sales.\u201d<\/p>\n

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No Disruptions in Sales or Revenue Collection<\/strong><\/p>\n

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Despite heightened sanctions, tougher trade conditions, stronger competitors, and a significant drop in global oil prices, Shamsi said Iran\u2019s oil export discounts have declined, and overall performance in exporting oil and collecting revenue has improved over the past year.<\/p>\n

\u201cThere has been a substantial improvement in revenue collection compared with before, and there is no disruption in this process,\u201d he said.<\/p>\n

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Revenue Collected in Half the Legal Timeframe<\/strong><\/p>\n

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Shamsi added that under contract terms, companies involved in Iran\u2019s oil sales have a set period to settle payments. \u201cCurrently, all oil revenue is collected in less than half the legally specified time,\u201d he said.<\/p>\n

He noted that while some payments are collected according to their contractual due dates, \u201cgenerally, there is no oil sold for which payment is not received.\u201d<\/p>\n

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Offsetting the Impact of Falling Global Prices<\/strong><\/p>\n

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In conclusion, Shamsi reiterated that although global oil prices have fallen about 21% in recent months, the ministry has partially offset this by increasing export volumes and reducing discounts. \u201cLike all oil-exporting countries, Iran\u2019s revenues are affected by falling prices, but these measures have mitigated that impact,\u201d he said.<\/p>\n<\/div>\n<\/div>\n

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