TEHRAN (MNA) -- The Zambian government's deal with Iran for the supply of crude oil directly and more cheaply from that country has been put on hold due to logistic problems, local newspaper Daily Mail reported on Friday.
Energy Minister George Mpombo was quoted as saying on Thursday that the deal is on hold because of transshipment problems and terms of business such as payment period for the consignment.
Mpombo said the Zambian side gives a payment period of four months, while Iran initially gave two weeks then later four weeks.
"The circle of crude oil process takes four weeks to move from the Middle East before the cargo reaches Zambia. This would mean that they would be demanding payments before the consignment even reaches us," he said.
The minister, however, noted that the government was in the process of approaching more Middle East and African oil producing countries for their assistance.
The deal with Iran on a government-to-government basis was meant to cut off middlemen in the petroleum industry so that crude oil could be procured directly from Iran.
Tehran Times Energy Desk
© Tehran Times 2004
