Uncovering the Chinese Purchasers of Iranian Oil [UPDATED August 30, 2023]

August 30, 2023 | Claire Jungman and Daniel Roth

China is principally responsible for keeping the Iranian regime in business through oil purchases that have totaled $47 billion since President Biden assumed office in January 2021 to December 2022.  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 August 2023 - shows the top teapot refinery purchasing Iranian crude is Qingdao-based Lawen Namu Petroleum Trading Co. ltd. (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. UANI wrote to Lawen Namu in February 2023.

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.”

Second biggest teapot importer is Shangang Guomao, followed by Qihang Energy, a relative newcomer on S&P Global’s latest list of top Chinese importers for total feedstocks for the end 2022. Shangang Guomao has received 17 different shipments of Iranian crude oil, branded as “Crude, Forties, Malaysia or Bitumen Blend.” Together these shipments have totaled more than 27 million barrels of Iranian oil. Qihang has received at least 16 different shipments of Iranian crude oil, branded as Fujairah or as “Mal Blend.” Together these shipments totaled more than 22.4 million barrels of Iranian oil.

Fourth goes to Shandong Shengxing Chemical Co., Ltd. (Shandong Shengxing), located on the northern coast of Shandong province. According to Global Trade Alert, Shandong 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 27 different shipments of Iranian crude, branded as Oman crude, and Iraqi crude oil. Together these shipments totaled approximately 23.2 million barrels of Iranian oil.  UANI wrote to Shandong Shengxing in February 2023. 

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 August 29, 2023]

Refinery

Number of Shipments

Branded/Rebranded As

# of Barrels

Vessels Involved

LAWEN NAMU

29

Crude, Oman and Nemina

39,785,151

 

 

 

 

 

FENG TAI, HERA 1, HECATE, ANTHEA,

MEMPHIS, ALANA,

BOREAS,

ELSA, NEREIDES, RHEA, ACHELOUS, FJORD SEAL, SAKARYA

SHANGANG GUOMAO

17

Crude, Forties, Malaysia and Bitumen Blend

27,488,267

GLORY FOREVER, ELOISE (EX: SIMBA), ANSHUN II, CARINA V, PROGRESS V, BREEZE V, PHOENIX I, TITAN, ASTERIX, ROMA, YANNIS, LYDIA II, , FIONA

QIHANG YUANYANG/QIHANG ENERGY

16

Fujairah and Mal Blend

24,377,206

PENTA I, UZOR, TIMIMUS, CATHAY PHOENIX, VETER, ELVA, TREND, IRISES, NIERUS, ARTURA, CATHAY KIRIN, PRADA,

SHANDONG SHENGXING

27

Oman, Iraq, Bitumen Blend and Mal Blend

24,251,907

MARTINA, VORAS,ANASTASIA I, CHOLA QUEEN, AVENTUS I, BERG 1, REMY, BRAVA LAKE, ALTUS, NS CREATION, RANI, NYANTARA,PANDORA, EVERSHINE, AYDEN, OTARIA, GALAXY STAR, PUTRI SAMUDRA

KEDAMA

16

Nemina and Mal Blend

23,780,170

HERA 1, MEMPHIS, FENG TAI, TIMMIUS, ELSA, ACHELOUS, ANTHEA, LYDIA II, NEREIDES

HUALONG

20

Urals, Mal Blend, Oman and Blue Laser

17,683,704

SPIRIT OF CASPER,  PHOENIX I, ELOISE (EX: SIMBA), ALTUS, LEOPARD,, IVY, PRADA , BERG 1, YONG XING SHUN HANG, ANNICK, ROMA, AYDEN

XINTAI

16

Malaysia, Nemina, Bitumen Blend, ESPO and Oman

12,882,979

 

 

CHOLA QUEEN, MARTINA, RANI, BRIGHT SONIA, SPIRIT OF CASPER, ANASTASIA I, SHANAYE QUEEN, AVENTUS I, BRAVA LAKE, PANDORA

YINGYU ENERGY

8

Mal Blend, Oman

12,432,071

OTARIA , AMAK, GLORY FOREVER, PHOENIX I, BERG 1, PALMER, NIERUS, TIFANI

JINCHENG

6

Oman, Bitumen Blend, Mosa, and Crude

10,996,519

ASTERIX, TIBURTINA, CARINA V, LIANA, MONOCEROS, NATALINA 7

SHENCHI

11

Mal Blend

10,769,197

 

BRIGHT SONIA,

PRADA, DOLPHIN, INNOVA, SPIRIT OF CASPER, QUEEN SERE, VOLANS, ELVA, GALAXY STAR, LEONOR

GEA

9

Mal Blend and Nemina

10,681,595

EMILIA, LADY SOFIA, AFRODITA I, PENTA I, ALTUS, REX 1, JOLIE, BLISSFUL SEA, SPAR

XINYUE

9

Crude and Mal Blend

8,555,972

PALMER, ABYSS, QUEEN SERE,BRIGHT SONIA, MS ANGIA, PANDORA, GALAXY STAR, NYANTARA

YUEYANG GUANSHENG

6

Bitumen Blend and Fuel Oil

8,397,949

AVITAL, LYDIA II, INNOVA, PALMER, SPIRIT OF CASPER, BERG 1

KELIDA

8

Crude, Oman, Iraq, Mal Blend and Nemina

8,016,385

CLYDE NOBLE, EMILIA,INNOVA, LADY SOFIA, ANITA, ELVA, OTARIA

QIRUN

6

Mal Blend

6,512,012

PALMER, QUEEN SERE, VIGOR, SPAR, INNOVA, SPIRIT OF CASPER

MEIJIANENG

5

Oman, Mal Blend and Bitumen Blend

6,423,348

ELOISE,  ACHELOUS, ISAIAH, SNOW LOTUS, ABYSS

LUQING

4

Mal Blend

5,749,530

ANNICK, IONA, IRISES, MEHLE

GUANGHUI KAINENG

6

Mal Blend

4,988,758

EVERSHINE, MEMPHIS, MS ANGIA, ATILA, IVY

BANFU ENERGY

3

Mal Blend, Nemina

4,732,148

ANTHEA, ALANA

HENGLI PETROCHEMICAL

3

Crude

3,982,379

HEBE, SCORPIUS, GALAXY STAR

FURONGKANG

3

Crude, Oman & Mal Blend

3,804,369

IVY, BRIGHT SONIA, FIONA

QICHENG

3

Oman, Bitumen Blend, Malaysia Blend

3,350,672

PANDORA, INNOVA, YANNIS

YINGKE

3

Fuel Oil & Mal Blend

3,215,930

LADY LUCY , ROMA, ANNICK

GANGRUN

2

NEMINA

3,096,726

MEMPHIS, ACHELOUS

OCEANIC

5

Bitumen Blend, TBA

2,923,916

PHOENIX I, DOLPHIN, INGRID, TELSA

HAIWANGDA

2

Bitumen Blend, Mal Blend

2,651,910

BRIGHT SONIA, IVY

HUAJIN XIANGRUN

4

Mal Blend

2,639,642

PHOENIX I, PABLO , MARTINA, ROMA

XINCHI

2

Bitumen Blend and Fujairah

2,221,568

SKADI, NESS

HAIKE

2

Mal Blend

2,063,816

PANDORA, ANNICK

CHANGFENG

1

Mal Blend

2,042,323

PUTRI SAMUDRA

SAIDI

1

Fujairah Blend

2,042,266

VIRGO

DONGMING

2

Fuel Oil and Mal Blend

2,013,631

PALMER, ATILA

QINGHANG ENERGY

1

Fujairah

2,007,772

PAPA

XIANNENG

1

Bitumen Blend

1,999,219

SCORPIUS

GUANGDONG HONGHANG

1

Crude

1,994,565

PAPA

QINGGANG QULIU

1

Mal Blend

1,980,791

ANNICK

ZHONGKANG INTERNATIONAL

1

Mal Blend

1,958,593

IVY

LZVHOU

1

Mal Blend

1,921,461

ABUNDANCE III

HAO KUN

1

Bitumen Blend

1,921,423

PENTA I

YATAI ENERGY

1

Malaysian Blend

1,919,096

SELENE

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 , DOLPHIN

SINOCHEM CHANGHE

2

Bitumen Blend, Oman

1,722,944

BERG 1, EVERSHINE

GAIDA

2

Crude

1,534,340

 

ELOISE, FENG TAI

XINZHUOYUE

2

TBA

1,501,419

ANASTASIA I, BRIGHT SONIA

YISHENGXIANG

1

Mal Blend

1,501,419

NIERUS

DINGQIAN

2

Bitumen Blend and Mal Blend

1,468,1133

NYANTARA,OCEAN HERMANA

OCEAN PARK

2

Mal Blend, Nemina

1,377,266

ALANA, PHOENIX I

DAOYANG

2

Bitumen Blend

1,136,828

CIMARRON, SPAR

CHAMBROAD

2

Bitumen Blend

1,291,249

EVERSHINE , BRIGHT SONIA

RONGHAI

2

Crude, Mal Blend

1,228,102

COLOSSUS, SAMSUN

HEBEI XINHAI

2

Crude & Mal Blend

1,240,603

PABLO,URGANE I

YINGJIRUI

1

Nemina

1,125,532

MEMPHIS

TAIFENG HAIRUN

2

Crude

1,104,875

DOLPHIN, PRADA

QINGYUAN

2

Nemina

1,093,771

MEMPHIS

HANKUN ENERGY

2

Light Crude and Malaysian Blend

1,090,550 + 2051332

ALANA, PHONIX

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

TALOSA, HORNET

ZHONGCHEN

1

Bitumen Blend

1,014,631

GABRIELLE

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

DONGYING HONGXIANG

1

Mal Blend

935084

AYDEN

GUANGJIN SHUNHE

2

Bitumen Blend

848,326

MARTINA, RANI

WANTONG

1

Crude

842,920

CRESTED

DINGYI

1

Oman

740,349

ALBA SUN

HUANHAI ENERGY

1

Singma

719,500

GULF VENTURE

YUANTONG ZHENGDAO

1

Mal Blend

718,064

ABYSS

CGN

1

Mal Blend

717,867

CLYDE NOBLE

SHILONG

1

Crude

711,301

NYANTARA

BEI ANG SI

1

Mal Blend

703,286

HESTIA

ZHOUSHAN JIAOTOU

1

Bitumen Blend

691,500

GULF VENTURE

HANYUAN ENERGY

1

Crude

684,399

URGANE I

XINHAN

1

Crude

609,009

ABYSS

LIANHONG

1

Condensate

605,163

SUPER EVER

DAQI CHEMICAL

1

Condensate

569,034

TOMIE

ZHONGJIAO

1

Crude

512,117

JAKA TARUB

SHANGNENG

1

Bitumen Blend

505,250

DOLPHIN

GUANGZHOU RUBIO

1

Mal Blend

500,000

MS ANGIA

HONGRUN

1

Mal Blend

496,900

CIMARRON

EDEN

1

Mal Blend

419,403

DOLPHIN

REMIS TRADING

1

Oman

265,900

AVENTUS I

 

 

 

 

 

Total

324

 

377,029,204

 

*reportedly not affiliated with Sinochem Holding 

sHANDONG pRO
(Credit: Reuters Muyu Xu)