UPDATE 1-European refiners ready to welcome return of Iranian crude

* European refineries halted Iranian crude buying in 2012 * Iran wants to retrieve market share after sanctions (Adds Saras comment) By Ron Bousso LONDON, July 14 (Reuters) - Mediterranean refiners aregearing up to welcome the return of Iranian crude oil to themarket which could push prices lower and boost profits followingthe easing of Western sanctions under a landmark nuclear deal. Iran's crude exports were a regular fixture for Europeanrefineries before Western sanctions were imposed on the key OPECproducer in 2012 over its nuclear programme, halving its exportsto just over 1 million barrels per day. "Iran has been a long standing valued partner ... We arelooking forward to Iran coming back to the market," said aspokesman for Greece's biggest refiner Hellenic Petroleum, stressing that they will not buy any crude beforesanctions are officially lifted. "The volumes of crude oil that will re-enter theMediterranean market will ease prices and give more options forrefiners in the region," he added. Though there were no details on how sanctions on oil will beeased, Iranian officials indicated they would try to maximisecrude exports to Europe and restore a market share of over 40percent there. Analysts expect the deal could see Iran increase its oilexports by up to 60 percent within a year. Additional volumes of crude would only pile pressure on amarket already facing a large oversupply. For refiners, however,cheaper feedstock means higher profit. Iranian crude accounted for around one quarter of Hellenic'scrude oil intake before 2012, and just like many Mediterraneanrefiners, it is geared up for Iranian crude. European oil buyers, including Italy's Eni andSaras have held talks with National Iranian Oil Company(NIOC) officials in Europe and Tehran over the past year inanticipation of sanctions being eased. A spokeswoman for Spain's Compania Espanola de Petroleos(CEPSA) said "Iranian crude has largely been part of our supplyand we maintained a long commercial relationship with them." "If sanctions are lifted, as it seems, Iranian crudes willdefinitively be again another alternative to consider," CEPSAtold Reuters in a statement. A spokesman for Saras said the independent refiner "would bedelighted if Iranian oil comes back to the market, as itsquality is very interesting for complex and flexible refinerieslike ours". Asian buyers, notably China, India and Japan, have continuedto buy limited volumes of Iranian crude in recent years. "Two to three months from now, you will probably see someIranian crude coming to Europe and Asia," said Eshan Ul-Haq,senior market consultant with KBC, which expects Iran's exportto rise over that period by 300-400,000 bpd, of which 150,000bpd is expected to reach Europe. "It would mean cheaper crude for Mediterranean refineries,especially smaller countries that have been impacted by economicproblems - like Greece," Ul-Haq said. Royal Dutch Shell, whose officials recently heldtalks in Tehran on future cooperation and the repayment of theAnglo-Dutch company's $2 billion debt said on Tuesday it wasinterested in doing business in Iran. "Strictly within the boundaries of the law, we areinterested in exploring the role Shell can play in developingIran's energy potential," a spokeswoman said. The table below shows the Iranian crude oil imported bycompanies in Europe, including Turkey, prior to the 2012European oil embargo. Figures in '000s of bpd are based on industry and Reutersestimates. Customer Country Volume '11 Tupras Turkey 200 Total France 100 Shell UK/NL 100 Hellenic Greece 80 Cepsa Spain 70 Motor Oil Greece 60 Repsol Spain 30 ERG Italy 30 Iplom Italy 30 ENI Italy 20 Saras Italy 20 Total 740 (Additional reporting by Libby George, editing by David Evans)