The Ceylon Petroleum Corporation (CPC) today refuted media reports alleging that Iran has recommenced exporting crude oil to Sri Lanka.

Iran has started exporting crude oil to South Africa and Sri Lanka following the easing of sanctions against Tehran as a result of the Geneva nuclear deal, Press TV reported yesterday, qouting a senior Iranian oil official.

However, the Managing Director of the CPC, Susantha de Silva, rejected the report as “completely untrue” and assured that Sri Lanka has not imported “a single a drop” of crude oil since the embargo.

Speaking to Ada Derana, he stated that the CPC had to face a large fuel supply crisis when the US imposed sanctions on Iranian oil in the first half of 2012.

He stated that Sri Lanka’s oil refinery, which was almost entirely reliant on imports of Iran’s crude, had to be shut down on four occasions due to the sudden suspending of oil imports from Iran and that after great effort they were able to find a suitable Oman Brent and another crude oil mixture.

Except for that crude mixture not a single drop of oil was imported from Iran, he said, adding, that shipping companies had even refused to provide a freighter as bank accounts on previous deals and insurance coverage had ended.

Susantha de Silva stated that due to this Iran had even volunteered to supply crude oil on credit at one time and that however there was no proper process for this.

He stated that due to the various incorrect reports alleging that Sri Lanka was importing crude oil from Iran since 2013, US officials are constantly on alert and inquiring on the matter.

The CPC Managing Director added that they have to obtain clearance from the US when importing oil from other countries and that the relevant documents and information regarding the country and company are provided to US authorities.

He assured that Sri Lanka has not violated the US sanction on Iran in any manner and that they are completely cooperating with the US on the matter.

However, the director for international affairs at the National Iranian Oil Company (NIOC), Mohsen Qamsari, had stated that oil exports to Sri Lanka and South Africa are carried out under “single-shipment” contracts for the time being.

Nevertheless, he added, “Iran has no problem with signing long-term contracts with Sri Lanka and South Africa on oil exports.”