23 August 2011
Director of National Iranian Oil Company's (NIOC) International Affairs Department has announced Iran signed the first deal on oil swap with a foreign company after a one-year hiatus.
Mohsen Qamsari further said talks are underway making with another reputable foreign company and it is expected the second contract will be signed in the near future, Mehr News Agency reported.
Qamsari did not name the companies involved. "Iran is ready to conduct oil swap with all regional countries," he noted. On the resumption of oil swap with a number of Caspian Sea littoral states Qamsari said, " Despite the fact that oil swap has resumed, the volume is low."
Given the high cost of oil storage, oil swaps should be increased to ensure that the transactions are economically viable, he added.
Qamsari noted that extensive marketing has begun in this respect. The official said NIOC has made huge investment in both Caspian Sea and Persian Gulf's terminals, adding considering these infrastructures there is no need for any discount.
According to officials, swap of Iranian oil with Persian Gulf littoral states resumed in June. With the passage of about 13 years since the start of oil swap with Caspian Sea littoral states via Iran to the Persian Gulf, in March 2010, Iran did not swap any oil due to non-renewal of contracts with four foreign companies.
The then officials of Oil Ministry said the reason for the suspension of oil swap was to uphold national interests and announced that in the past 13 years no oil swap was conducted and Iran had actually become one of the buyers of oil from neighboring states.
Another reason for the suspension of oil swap from Caspian Sea was that Iran's oil for export was not bought in the Persian Gulf. Some NIOC managers maintain that the suspension of this trade will make it possible to conduct marketing schemes for Iranian oil.
With the non-renewal of oil swap contracts of four international companies, Germany's Select Energy Trading, United Arab Emirates Dragon Oil, Switzerland's Vitol, and Ireland's Caspian Oil Development, these companies turned to uneconomic routes such as Baku-Novorossiysk pipeline, Baku-Supsa pipeline and Caspian Pipeline Consortium to transfer oil from Turkmenistan and Kazakhstan to the target markets.
Meanwhile, suspension of oil swap contracts brought Iran's largest oil terminal to the verge of total shutdown.
Director of National Iranian Oil Company's (NIOC) International Affairs Department has announced Iran signed the first deal on oil swap with a foreign company after a one-year hiatus.
Mohsen Qamsari further said talks are underway making with another reputable foreign company and it is expected the second contract will be signed in the near future, Mehr News Agency reported.
Qamsari did not name the companies involved. "Iran is ready to conduct oil swap with all regional countries," he noted. On the resumption of oil swap with a number of Caspian Sea littoral states Qamsari said, " Despite the fact that oil swap has resumed, the volume is low."
Given the high cost of oil storage, oil swaps should be increased to ensure that the transactions are economically viable, he added.
Qamsari noted that extensive marketing has begun in this respect. The official said NIOC has made huge investment in both Caspian Sea and Persian Gulf's terminals, adding considering these infrastructures there is no need for any discount.
According to officials, swap of Iranian oil with Persian Gulf littoral states resumed in June. With the passage of about 13 years since the start of oil swap with Caspian Sea littoral states via Iran to the Persian Gulf, in March 2010, Iran did not swap any oil due to non-renewal of contracts with four foreign companies.
The then officials of Oil Ministry said the reason for the suspension of oil swap was to uphold national interests and announced that in the past 13 years no oil swap was conducted and Iran had actually become one of the buyers of oil from neighboring states.
Another reason for the suspension of oil swap from Caspian Sea was that Iran's oil for export was not bought in the Persian Gulf. Some NIOC managers maintain that the suspension of this trade will make it possible to conduct marketing schemes for Iranian oil.
With the non-renewal of oil swap contracts of four international companies, Germany's Select Energy Trading, United Arab Emirates Dragon Oil, Switzerland's Vitol, and Ireland's Caspian Oil Development, these companies turned to uneconomic routes such as Baku-Novorossiysk pipeline, Baku-Supsa pipeline and Caspian Pipeline Consortium to transfer oil from Turkmenistan and Kazakhstan to the target markets.
Meanwhile, suspension of oil swap contracts brought Iran's largest oil terminal to the verge of total shutdown.
© Iran Daily 2011
