The cargo was purchased based on Persian Gulf
free on board (FOB) which means the buyer has liability for goods that are
damaged or destroyed during shipment between the two parties, NIOC's Department of International Affairs said on Monday.
"FOB shipping point" (or origin)
means that the buyer is at risk while the goods are shipped, and "FOB
destination" states that the seller retains the risk of loss until the
goods reach the buyer.
An Iranian oil tanker carrying gas
condensate collided with a Chinese ship and exploded in the East China Sea on
The Sanchi tanker, heading to South Korea
and registered in Panama, collided with the CF Crystal some 160 nautical miles
off the coast near Shanghai.
The Iranian tanker was carrying 136,000
tonnes of condensate, an ultra light crude, an equivalent of under a million
barrels worth around $60 million based on current crude oil prices.
South Korean customers had purchased the
cargo on a Persian Gulf FOB basis.
NITC formed an emergency committee with
senior company officials immediately after the news of the collision was
transmitted to Tehran.
The state-run company has dispatched two
vessels sailing in the region to the spot of the explosion to offer help to