Shamsi explained the current process for selling oil and repatriating the revenue: “Oil is delivered to buyers under contracts, and they are required to pay the proceeds into the country’s 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.”

Division of Responsibilities Between the Oil Ministry, CBI

Shamsi emphasized that NIOC’s role is limited to exporting oil and ensuring payment is made to the designated broker. “After the funds are deposited, NIOC has no authority or responsibility over how the money is used or allocated,” he said.

He added that under the country’s economic framework, the oil company handles exports and transactions, receives confirmation of deposits from the designated banks—appointed monthly by the Central Bank of Iran—and settles accounts with the central bank based on these confirmations.

“Over the past year, compared with the previous five years, we have achieved our best records in various aspects of oil exports,” Shamsi said.

Reduced Discounts in Oil Sales

Shamsi noted that daily export volumes reached their highest levels in the past year, while Iran’s oil discounts hit their lowest in five years. “Significantly, the discounts on Iran’s oil sales have decreased,” he said.

He also highlighted improvements in the timing of payments: “The period for receiving revenue from oil exports has been reduced by more than 40%, giving us better cash flow from oil sales.”

No Disruptions in Sales or Revenue Collection

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

“There has been a substantial improvement in revenue collection compared with before, and there is no disruption in this process,” he said.

Revenue Collected in Half the Legal Timeframe

Shamsi added that under contract terms, companies involved in Iran’s oil sales have a set period to settle payments. “Currently, all oil revenue is collected in less than half the legally specified time,” he said.

He noted that while some payments are collected according to their contractual due dates, “generally, there is no oil sold for which payment is not received.”

Offsetting the Impact of Falling Global Prices

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. “Like all oil-exporting countries, Iran’s revenues are affected by falling prices, but these measures have mitigated that impact,” he said.