Key facts
- Hengli Petrochemical, a large Chinese refiner, faces U.S. sanctions for alleged purchases of Iranian oil.
- The company denies buying Iranian crude and is seeking to be removed from the U.S. blacklist.
- Hengli is now exploring crude oil purchases from West Africa and non-Iranian Middle Eastern producers.
- The refiner has reportedly secured at least 2 million barrels of West African crude for June delivery.
Hengli Petrochemical, a major privately-owned Chinese refiner, is reportedly seeking non-Iranian crude oil after being sanctioned by the U.S. Treasury in April. The U.S. accused Hengli of purchasing billions of dollars worth of Iranian oil, a claim the company denies. Hengli has stated the sanctions lack factual or legal basis and is actively working to be removed from the blacklist.
According to trade sources cited by Reuters, Hengli has begun inquiring about crude cargoes from West Africa and other Middle Eastern producers not subject to sanctions. The refiner has reportedly secured at least 2 million barrels of West African crude for delivery in late June or early July. However, Hengli may face challenges in procuring non-sanctioned crude, as sellers might be hesitant to engage with a sanctioned entity due to the risk of secondary sanctions.