Uncovering the Chinese Purchasers of Iranian Oil [UPDATED April 28, 2023]
China is principally responsible for keeping the Iranian regime in business through oil purchases that have totaled over $47 billion since President Joe Biden assumed office. This is despite U.S. sanctions that were reimposed in 2019 with the stated aim of reducing Iranian oil exports to zero. China has proven the savior of Tehran by continuing to import millions of barrels of oil every single day. Chinese imports have likely exceeded those made when the trade was not subject to U.S. sanctions.
While UANI has successfully pinpointed the more than 300 foreign oil-carrying “Ghost Armada” ships facilitating the trade, it has been difficult to identify the specific buyers – until recently. In recent months UANI has obtained documentation offering major insight into who exactly is funding this illicit and uniquely lucrative trade.
The Purchasers
Data received and reviewed by UANI shows that Iranian oil is being imported by China’s officially non-state, semi-independent “teapot” petrochemical refiners. Teapots were originally permitted to import crude, subject to centrally imposed quotas, starting in July 2015. Since then, China’s economic planning agency, the National Development and Reform Commission (NDRC), has granted tens of new licenses annually. Estimates of the number of teapots hover around 150.
Today, the teapots import approximately one-fifth of all China’s oil needs. Around 70% of China’s teapot oil processing takes place in the eastern coastal province of Shandong, south of Beijing and north of Shanghai. For Iranian oil purchases, the teapots manage to buy at steep discounts -- at least $4 a barrel below benchmark Brent. The Iranian origin of oil is also concealed, by rebranding as either Omani Crude, Iraqi Crude, Russian Urals, Bitumen Blend, Nemina, or Malaysian Blend.
The fact that teapots – rather than major state actors – would import the bulk of Iranian oil makes sense from China’s perspective. Since the U.S. has, in fact, sanctioned Chinese state-owned imports in the past, such as Zhuhai Zhenrong, the decision to import Iranian oil via dozens of small unaffiliated “non-state” firms helps obscure the Chinese government’s role and protect its own big firms from scrutiny, accountability, and attendant sanctions. By contrast, with their small size and limited business operations, teapots are both hard to uncover and not exposed to the U.S. financial system. In conjunction with the lack of U.S. enforcement, the threat of sanctions is, therefore, far less of a constraining factor.
Available data - through March 2023 - shows the top teapot refinery purchasing Iranian crude is Lawen Namu. Lawen Namu received at least 29 different shipments of Iranian crude oil, branded as crude, Oman crude or Nemina. Together these shipments totaled approximately 39 million barrels of Iranian oil.
Lawen Namu is a trading company based at the key port of Qingdao in Shandong province. In January 2021, S&P Global noted that Lawen Namu’s oil imports had “jumped 212%” from the previous month, while it classified most of its imports as “blended grades” from Oman, West Africa, and Russia.”
The second biggest teapot importer is Shandong Shengxing Chemical Co., Ltd. (Shengxing). According to Global Trade Alert, Shengxing was granted its import license on May 23, 2018, perhaps not coincidentally, just two weeks after President Trump announced the U.S. withdrawal from the Iran nuclear deal (JCPOA). Shengxing has received at least 24 different shipments of Iranian crude, branded as Oman crude, and Iraqi crude oil. Together these shipments totaled approximately 21 million barrels of Iranian oil.
Third is Qihang Energy, which jumps two places from January and is also a relative newcomer on S&P Global’s latest list of top Chinese importers for total feedstocks for the end 2022. Qihang has received at least 14 different shipments of Iranian crude oil, branded as Fujairah or as “Mal Blend.” Together these shipments totaled more than 21.6 million barrels of Iranian oil.
Fourth is Shandong Dongfang Hualong Industry & Trading Group (Hualong), followed by Shangang Guomao. Hualong was granted its import license on the same day as Shengxing. Hualong has also received at least 19 different shipments of Iranian crude oil, branded as Russian Urals or as “Mal Blend.” Together these shipments totaled more than 17.6 million barrels of Iranian oil. Vessels that are carrying oil rebranded as “Mal Blend” typically export directly from Iran and then engage in a very short ship-to-ship (“STS”) transfer with a vessel in Iranian waters. This allows the vessel to receive new documentation claiming the oil is Malaysian, instead of Iranian.
In addition to documentation obtained by UANI, the Wikiran website cites a further six teapot refineries - Lihuayi Lijin Refining & Chemical Co. Ltd Shandong Tianhong Chemical Co. Ltd Henan Fengli Petro-Chemical Co. Ltd Shandong Kenli Petrochemical Co. Ltd Qirun Group Co. Ltd Dongying Lianhe Petrochemical Group Co. Ltd. (Fuhai Group) – reportedly accounting for a monthly delivery of four million barrels over a one year period and in apparent collaboration with the Turkish energy giant, ASB Group. The full table of teapot refiners importing Iranian oil is listed in descending order from largest importer by barrels below. UANI will continue to update this chart as we receive more information on the purchasers of Iranian oil in China [Table Updated April 28, 2023]
Refinery |
Number of Shipments |
Branded/Rebranded As |
# of Barrels |
Vessels Involved |
LAWEN NAMU |
29 |
Crude, Oman and Nemina |
39,785,151
|
ARZOYI, HERA 1, HECATE, ANTHEA, MEMPHIS, ALANA, BOREAS, ELSA, NEREIDES, RHEA, ACHELOUS, FJORD SEAL (EX: FEYHA N), SAKARYA (EX: SUEZ HANS) |
SHENGXING |
24 |
Oman, Iraq, Bitumen Blend and Mal Blend |
20,990,324 |
MARTINA, VORAS (EX: ERMIS), ANASTASIA I, CHOLA QUEEN, AVENTUS I, BERG 1, REMY (EX: EASTERN PRIDE), BRAVA LAKE, ASTRID I, NS CREATION, RANI, NYANTARA (EX: ROSSONERI), YONG DING, EVERSHINE (EX: CHAO XING), AYDEN |
QIHANG YUANYANG/QIHANG ENERGY |
14 |
Fujairah and Mal Blend |
21,634,998 |
PENTA I, UZOR, TIMIMUS (EX: NEOFIT), CATHAY PHOENIX, VETER, ELVA, TREND, IRISES, NIERUS, CY LUCK, CATHAY KIRIN |
HUALONG |
19 |
Urals, Mal Blend, Oman and Blue Laser |
17,629,546
|
SPIRIT OF CASPER (EX: MARIA GRACE), PHOENIX I, SIMBA, ASTRID I, SAGAR VIOLET (EX: LEOPARD), IVY, PRADA (EX: KARMA), BERG 1, YONG XING SHUN HANG, ANNICK, ROMA, IVY |
SHANGANG GUOMAO |
10 |
Crude, Forties, Malaysia and Bitumen Blend |
15,942,148
|
GLORY FOREVER, LAUREN II, SIMBA, ANSHUN II, CARINA V, PROGRESS V, BREEZE V, PHOENIX I, TITAN |
YINGYU ENERGY |
8 |
Mal Blend, Oman |
12,432,071 |
OTARIA (EX: GALA,WINSOME), AMAK, GLORY FOREVER, PHOENIX I, BERG 1, PALMER, NIERUS, TIFANI |
KEDAMA |
9 |
Nemina and Mal Blend |
11,311,335 |
HERA 1, MEMPHIS, ARZOYI, TIMMIUS, ELSA |
SHENCHI |
11 |
Mal Blend |
10,769,197
|
BRIGHT SONIA, PRADA (EX: KARMA), DIAMOND, INNOVA, SPIRIT OF CASPER (EX: MARIA GRACE), QUEEN SERE (EX: RAIN DROP), VOLANS (EX: SUPER SAPPHIRE), ELVA, GALAXY STAR, LEONOR |
XINTAI |
12 |
Malaysia, Nemina, Bitumen Blend, ESPO and Oman |
9,343,543
|
CHOLA QUEEN, MARTINA, RANI, BRIGHT SONIA, SPIRIT OF CASPER (EX: MARIA GRACE), ANASTASIA I, SHANAYE QUEEN |
KELIDA |
7 |
Crude, Oman, Iraq, Mal Blend and Nemina |
7,655,978 |
CLYDE NOBLE, EMILIA (EX: CAROLINA), INNOVA, LADY SOFIA, ANITA, ELVA |
XINYUE |
7 |
Crude andMal Blend |
6,833,561 |
PALMER, ABYSS, QUEEN SERE (EX: RAIN DROP), BRIGHT SONIA, MS ANGIA, YONG DING |
MEIJIANENG |
5 |
Oman, Mal Blend and Bitumen Blend |
6,423,348 |
SIMBA, ACHELOUS, ISAIAH, SNOW LOTUS, ABYSS |
GEA |
4 |
Mal Blend |
5,680,148 |
EMILIA (EX: CAROLINA), LADY SOFIA, AFRODITA I, PENTA I |
BANFU ENERGY |
3 |
Mal Blend, Nemina |
4,732,148 |
ANTHEA, ALANA |
QIRUN |
4 |
Mal Blend |
4,507,372 |
PALMER, QUEEN SERE, VIGOR, SPAR |
YUEYANG GUANSHENG |
2 |
Bitumen Blend |
3,989,936 |
AVITAL, LYDIA II |
YINGKE |
3 |
Fuel Oil & Mal Blend |
3,215,930 |
DELPHI, ROMA, ANNICK |
JINCHENG |
2 |
Oman and Bitumen Blend |
2,953,209 |
ASTERIX, TIBURTINA |
OCEANIC |
5 |
Bitumen Blend, TBA |
2,923,916 |
PHOENIX I, DIAMOND, INGRID, TELSA (EX: TELLUS) |
QICHENG |
2 |
Oman, Bitumen Blend |
2,789,374 |
YONG DING, INNOVA |
HENGLI PETROCHEMICAL |
2 |
Crude |
2,746,170 |
HEBE, SCORPIUS |
HAIWANGDA |
2 |
Bitumen Blend, Mal Blend |
2,651,910 |
BRIGHT SONIA, IVY |
FURONGKANG |
2 |
Oman & Mal Blend |
2,619,644 |
IVY, BRIGHT SONIA |
GUANGHUI KAINENG |
4 |
Mal Blend |
2,497,699 |
EVERSHINE (EX: CHAO XING, MEMPHIS, MS ANGIA |
XINCHI |
2 |
Bitumen Blend and Fujairah |
2,221,568 |
SKADI, STRIBOG |
LUQING |
1 |
Mal Blend |
2,218,754 |
ANNICK |
QINGHANG ENERGY |
1 |
Fujairah |
2,007,772 |
PAPA |
CHANGFENG |
1 |
Mal Blend |
2,042,323 |
PUTRI SAMUDRA (EX: KANHA PRIDE) |
SAIDI |
1 |
Fujairah Blend |
2,042,266 |
VIRGO |
XIANNENG |
1 |
Bitumen Blend |
1,999,219 |
SCORPIUS |
LZVHOU |
1 |
Mal Blend |
1,921,461 |
OCEAN KAPAL |
HAO KUN |
1 |
Bitumen Blend |
1,921,423 |
PENTA I |
YEUYANG GUANSHENG |
1 |
Bitumen Blend |
1,919,061 |
HORNET |
KAIDING |
1 |
Crude |
1,843,156 |
BOREAS |
HUAYOU |
2 |
Mal Blend and Crude |
1,810,641 |
EVERSHINE (EX: CHAO XING), DOLPHIN |
SINOCHEM CHANGHE |
2 |
Bitumen Blend, Oman |
1,722,944 |
BERG 1, EVERSHINE (EX: CHAO XING |
HUAJIN XIANGRUN |
3 |
Mal Blend |
1,669,967 |
PHOENIX I, PABLO (EX: MOCKINGBIRD), MARTINA |
GAIDA |
2 |
Crude |
1,534,340
|
SIMBA, ARZOYI |
XINZHUOYUE |
2 |
TBA |
1,501,419 |
ANASTASIA I, BRIGHT SONIA |
YISHENGXIANG |
1 |
Mal Blend |
1,501,419 |
NIERUS |
DAOYANG |
2 |
Bitumen Blend |
1,136,828 |
DAISY 2, SPAR |
CHAMBROAD |
2 |
Bitumen Blend |
1,291,249 |
EVERSHINE (EX: CHAO XING, BRIGHT SONIA |
RONGHAI |
2 |
Crude, Mal Blend |
1,228,102 |
COLOSSUS, PARAMOUNT |
HEBEI XINHAI |
2 |
Crude & Mal Blend |
1,240,603 |
PABLO (EX: MOCKINGBIRD),URGANE I (EX: VENICE) |
YINGJIRUI |
1 |
Nemina |
1,125,532 |
MEMPHIS |
TAIFENG HAIRUN |
2 |
Crude |
1,104,875 |
DIAMOND (EX: YOLANDA), PRADA (EX: KARMA) |
QINGYUAN |
2 |
Nemina |
1,093,771 |
MEMPHIS |
HANKUN ENERGY |
1 |
Light Crude |
1,090,550 |
ALANA |
ZHEJIANG WUCHAN |
1 |
Bitumen Blend |
1,078,153 |
MEMPHIS |
JULI |
1 |
Mal Blend |
1,065,341 |
GLORY FOREVER |
KAIYI PETROCHEMICAL |
1 |
Bitumen Blend |
1,035, 729 |
SPAR |
RUNCHENG |
2 |
Bitumen Blend |
1,034,667 |
AKSTA, HORNET |
ZHONGCHEN |
1 |
Bitumen Blend |
1,014,631 |
DAMIA (EX: OAKA) |
DONGMING |
1 |
Fuel Oil |
1,013,631 |
PALMER |
HENGFENG |
1 |
Mal Blend |
973,389 |
INNOVA |
ZHONGYOU RUNHAI |
1 |
Mal Blend |
967,022 |
IVY |
HAIRUN SHENGDE |
2 |
Bitumen Blend and Mal Blend |
1,731,354 |
TIBURTINA, NYANTARA |
HAIKE |
1 |
Mal Blend |
955,190 |
YONG DING |
HONGXIANG |
1 |
Mal Blend |
935084 |
AYDEN |
GUANGJIN SHUNHE |
2 |
Bitumen Blend |
848,326 |
MARTINA, RANI |
WANTONG |
1 |
Crude |
842,920 |
CRESTED (EX: AMENITY) |
DINGQIAN |
1 |
Bitumen Blend |
771,823 |
NYANTARA (EX: ROSSONERI) |
ZHONGYOU YIHAI |
1 |
Mal Blend |
766,138 |
PRADA (EX: KARMA) |
DINGYI |
1 |
Oman |
740,349 |
ALBA SUN |
HUANHAI ENERGY |
1 |
Singma |
719,500 |
LEVIATHAN |
CGN |
1 |
Mal Blend |
717,867 |
CLYDE NOBLE |
SHILONG |
1 |
Crude |
711,301 |
NYANTARA (EX: ROSSONERI) |
BEI ANG SI |
1 |
Mal Blend |
703,286 |
HESTIA |
ZHOUSHAN JIAOTOU |
1 |
Bitumen Blend |
691,500 |
LEVIATHAN |
HANYUAN ENERGY |
1 |
Crude |
684,399 |
URGANE I (EX: VENICE) |
XINHAN |
1 |
Crude |
609,009 |
ABYSS |
ZHONGJIAO |
1 |
Crude |
512,117 |
JAKA TARUB (EX: VULA, POLAN) |
SHANGNENG |
1 |
Bitumen Blend |
505,250 |
DIAMOND (EX: YOLANDA) |
GUANGZHOU RUBIO |
1 |
Mal Blend |
500,000 |
MS ANGIA |
HONGRUN |
1 |
Mal Blend |
496,900 |
DAISY 2 |
EDEN |
1 |
Mal Blend |
419,403 |
DIAMOND (EX: YOLANDA) |
REMIS TRADING |
1 |
Oman |
265,900 |
AVENTUS I |
|
|
|
|
|
Total |
259 |
|
283,522,349 |
|
*reportedly not affiliated with Sinochem Holding
