South Korea wants US to backtrack on Iran decision

South Korea is sending a delegation to the United States to seek an extension of waivers which Washington ended on Monday with the aim of bringing Iran’s oil exports to zero.

The delegation led by Deputy Foreign Minister for Economic Affairs Yoon Kang-hyun will seek details on the US decision not to grant any waivers on imports of Iranian oil beyond May 1.

“As we have some time until the May deadline, we’re planning to try to see if we can persuade the US government to extend waivers,” an unnamed South Korean government official told Reuters.

South Korea is a key buyer of Iranian condensate, an ultra light oil Iran which is mainly used as a raw material to make petrochemicals such as plastics.

According to Reuters, Seoul has told US officials that there are few options for getting the same quality of Iranian condensate from other suppliers.

Asian customers favor Iran's South Pars condensate for its rich yield of naphtha which is a key feedstock for petrochemicals and a gasoline blending component.

On Tuesday, trade ministry officials reportedly met with petrochemical producers in Seoul to weigh the potential impact of the US decision and find ways to minimize it.

South Korea’s oil imports from Iran rose 23 percent in March, the highest since the country resumed buying Iranian oil in January.

South Korean refiners imported 1.2 million tonnes of crude oil from Iran, or 284,639 barrels per day (bpd), more than a five-fold increase from January as buying ramped up.

South Korea can buy up to 200,000 bpd of oil from Iran under six-month waivers given to eight countries by the United States in November.

SS