Iran's NITC Delays Tanker Delivery

NITC's VLCCs are also being used as oil storage.

NITC, formally the state run National Iranian Tanker Company, has delayed the delivery of the first of 12 newbuild very large crude carriers (VLCCs), company and industry sources have said.

Analysts had expected the 318,000 dwt VLCC Safe, which was reported to be undergoing sea trials off the coast of Shanghai earlier this year, to have been delivered some time in May.

"Delivery has been delayed because of the market. The market is not attractive for any ship owner," an NITC official was quoted as saying.

The ships, ordered in 2009, are being built at Shanghai Waigaoqiao and Dalian Shipyards, are being financed by China's Exim bank.

Market watchers have said the delay is significant as upcoming sanctions against the Islamic Republic means it will need access to more tankers.

From July 1st, 2012, ship owners found carrying Iranian product, either as fuel or cargoes will lose their P&I Cover from European companies, which account for about 90% of the world's tankers.

To counter this, NITC has secured alternative cover from companies in Asia and Kish P&I in Iran.

"We have $1 billion (in protection and indemnity cover). We can trade and go everywhere," an official told Reuters.

Once the sanctions are in effect, Iranian tankers will be the primary transporters of Iran's crude to customers such as China and India who are still buying the country's oil.

Iran has also been widely reported to be using NITC tankers to store oil, with over half of its tankers said to be currently commissioned for that purpose.