China’s Hengli Petrochemical, sanctioned by the United States (US) for allegedly purchasing Iranian oil, has bought at least 2 million barrels of West African crude and is seeking further mainstream supply, several trade sources said, as the refiner looks to get off the US blacklist.
Hengli, which was penalised by Washington in April and has denied buying Iranian oil, is looking to source entirely non-sanctioned oil, six of the people said.
Privately owned Hengli, which operates a 400 000 barrels per day refinery in the northeastern city of Dalian, has recently inquired about buying cargoes of West African and non-Iranian Middle Eastern crude for delivery from June onward, multiple sources said.
It bought at least two million barrels of West African crude for China delivery around late June or July, three of the sources said.
Hengli and the US Treasury did not respond to requests for comment. All of the sources spoke on the condition of anonymity due to the sensitivity of the matter.
While China rejects unilateral sanctions, such a designation can deter counterparties from dealing with sanctioned companies for fear of being penalised by the US government.
–Reuters–
