Uncovering the Chinese Purchasers of Iranian Oil [UPDATED March 1, 2023]

China is principally responsible for keeping the Iranian regime in business through oil purchases that have totaled $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 clear lack of U.S. enforcement, the threat of sanctions is, therefore, far less of a constraining factor. 

Available data - through February 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 23 different shipments of Iranian crude, branded as Oman crude, and Iraqi crude oil. Together these shipments totaled approximately 20 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 end 2022.  Qihang has received at least 11 different shipments of Iranian crude oil, branded as Fujairah or as “Mal Blend.” Together these shipments totaled more than 16.5 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 18 different shipments of Iranian crude oil, branded as Russian Urals or as “Mal Blend.” Together these shipments totaled more than 15.6 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 March 1, 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

23

Oman, Iraq, Bitumen Blend and Mal Blend

20,055,240

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)

QIHANG YUANYANG/QIHANG ENERGY

11

Fujairah and Mal Blend

16,530,953

PENTA I, UZOR, TIMIMUS (EX: NEOFIT), CATHAY PHOENIX, VETER, ELVA, TREND, IRISES, NIERUS

HUALONG

18

Urals, Mal Blend, Oman and Blue Laser

15,670,953

 

MARIA GRACE, PHOENIX I, SIMBA, ASTRID I, SAGAR VIOLET (EX: LEOPARD), IVY, KARMA, BERG 1, YONG XING SHUN HANG, ANNICK, ROMA

SHANGANG GUOMAO

9

Crude, Forties, Malaysia and Bitumen Blend

13,899,882

 

 

GLORY FOREVER, LAUREN II, SIMBA, ANSHUN II, CARINA V, PROGRESS V, BREEZE V, PHOENIX I

YINGYU ENERGY

7

Mal Blend, Oman

10,442,050

GALA (EX: WINSOME), AMAK, GLORY FOREVER, PHOENIX I, BERG 1, PALMER, NIERUS

XINTAI

12

Malaysia, Nemina, Bitumen Blend, ESPO, Oman

9,343,543

 

 

CHOLA QUEEN, MARTINA, RANI, BRIGHT SONIA, MARIA GRACE, ANASTASIA I, SHANAYE QUEEN

KEDAMA

5

Nemina & Mal Blend

6,890,728

HERA 1, MEMPHIS, ARZOYI, TIMMIUS

SHENCHI

8

Mal Blend

6,838,740

 

 

BRIGHT SONIA,

KARMA, DIAMOND, INNOVA, MARIA GRACE, QUEEN SERE (EX: RAIN DROP), VOLANS (EX: SUPER SAPPHIRE)

KELIDA

6

Crude, Oman, Iraq, Mal Blend and Nemina

6,672,469

CLYDE NOBLE, EMILIA (EX: CAROLINA), INNOVA, LADY SOFIA, ANITA

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

XINYUE

6

Crude, Mal Blend

4,778,595

PALMER, ABYSS, QUEEN SERE (EX: RAIN DROP), BRIGHT SONIA, MS ANGIA

BANFU ENERGY

3

Mal Blend, Nemina

4,732,148

ANTHEA, ALANA

YUEYANG GUANSHENG

2

Bitumen Blend

3,989,936

AVITAL, LYDIA II

QIRUN

3

Mal Blend

3,471,643

PALMER, QUEEN SERE, VIGOR

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)

XIANNENG

1

Bitumen Blend

1,999,219

SCORPIUS

JINCHENG

1

Oman

1,993,678

ASTERIX

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, 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

MOCKINGBIRD (EX: HELIOS), VENICE

YINGKE

2

Fuel Oil

1,235,139

DELPHI, ROMA

YINGJIRUI

1

Nemina

1,125,532

MEMPHIS

TAIFENG HAIRUN

2

Crude

1,104,875

DIAMOND (EX: YOLANDA), 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

OAKA

HENGFENG

1

Mal Blend

973,389

INNOVA

ZHONGYOU RUNHAI

1

Mal Blend

967,022

IVY

HAIKE

1

Mal Blend

955,190

YONG DING

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)

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

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)

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

232

 

247,216,816

 

*reportedly not affiliated with Sinochem Holding 

sHANDONG pRO
(Credit: Reuters Muyu Xu)