A who's who of sanctioned oil buyers

From The Middle East, Europe and Asia – Companies from all around the world buy petroleum from Iran.

As previously reported by WikIran, Sepehr Energy Jahan (SEJ) plays a significant role in selling petroleum, condensates and petroleum products on behalf of Iran’s Armed Forces General Staff (AFGS), similar to Sahara Thunder, a front for Iran’s Ministry of Defense (MODAFL), previously exposed as well.

WikIran would like to emphasize that the customers buying SEJ's oil aren't those who usually refine it, but rather middlemen acting on behalf of a wider scheme. Regardless of the middlemen's nationality, almost all the petroleum was physically headed to China, making China a grand sponsor for Iran's Armed Forces.

A thorough examination of signed contracts and Letters of Intent (LOIs) has shed considerable light on SEJ’s business practices, including processes, correspondence, disguise, discounts and more. The following article focuses on two levels of business progress:

1. Cases where signed contracts were identified or addressed as existent/fulfilled by other documents (“Contract+ or Equivalent”)
2. Cases where only a LOI or its equivalent were identified (“LOI or Equivalent”).

Case Study: Lynx Group Limited Deal Progression A Letter of Intent (LOI) sent by Lynx Group Limited to Xin Rui Ji Trad, SEJ’s front, for the purchase of : "Malaysia Crude Oil” (disguised Iranian crude oil)

Apparently the LOI was accepted, as both parties signed a contract for the purchase of such oil

Furthermore, it appears that at least one contract between the two has materialized, as evidenced by the “Delivery Notice” of the aforementioned “Malaysia Crude Oil” to Lynx Group Limited

Although a signed LOI or contract reflects progress in the process of completing a deal, in most cases, there was no proof of the deals’ completion. Deals with significant evidence of completion are noted as such in the first table.

Several key points are worth highlighting:

• Contracts were signed between buyers and different front companies controlled by SEJ’s network. For more information regarding SEJ’s front companies' network, click here

• Most customers are located in China, Hong-Kong and the UAE, with some notable exceptions in Qatar and the Netherlands. These were aware of working with an Iranian company named SEJ and buying sanctioned Iranian commodities.

• Regardless of the customer’s nationality, almost all petroleum shipments were destined for Shandong Province in China. End-user information is noted in cases where the documents reveal such.

• SEJ’s representatives ensured that customers’ end-users/exit-buyers were approved to lower competition among buyers, thus preventing lower oil price and decreased income.

• Discounts: the average discount for signed contracts was $14.5 per barrel. Chemcruz Energy PTE LTD received the highest discount – $21 per barrel. In contrast, the lowest discount was $8 per barrel for Qingdao Fushen Petrochemical Co., Ltd, which is intriguing given their status as a recurring customer with a large number of documented payment transfers. Sadly for Qingdao Fushen, U.S. Authorities designated it for conducting business with SEJ. It is noteworthy that the average discount requested in a LOI was $15.6 - The reduction represents a natural bargaining dynamic between the companies.

• Bank Account: Many of SEJ’s customers were required to disclose banking information as part of the contracts, and many disclosed it in their LOIs. Their banking information is presented in the third table below.

• SEJ’s customer relations appear to be subpar, particularly when compared to those of Sahara Thunder. SEJ’s representatives display a lack of concern for completing deals, frequently failing to adhere to schedules or honor contractual commitments. Furthermore, they have been known to offer inconsistent discounts, promise the same shipments to different customers, leaving them without updates or support. This erratic behavior suggests a troubling lack of professionalism and accountability in SEJ's dealings.

General Information of Sepehr Energy Jahan’s Customers – “Contract+ or Equivalent”

General Information of Sepehr Energy Jahan’s Customers – “LOI or Equivalent”

Banking Information – All Customers

WikIran urges the aforementioned customers, end-users and involved banks to take action against these clandestine means of financing Iran’s AFGS. WikIran will provide help to any bank or organization seeking relevant documents to discontinue such activities.

To download the documents used in this article, click here