21 September 2011
Tehran plans to gradually increase the volume of oil swap with Caspian Sea littoral countries, director of the National Iranian Oil Company's (NIOC) International Affairs Department said.
Mohsen Qamsari said almost 500,000 barrels of crude oil have been delivered to Neka Port in northern Iran since the resumption of oil swap operations with Caspian Sea littoral states in July, Shana reported on Monday.
In early July, Managing Director of the NIOC Ahmad Qale'bani announced the resumption of oil swaps with Caspian states. He added that Iran was negotiating the volume of oil swap with its northern neighbors.
Qamsari said once the volume of the delivered crude reaches one million barrels, an equal amount will be ready for shipment via Iran's oil terminals in the Persian Gulf. He added the country plans to deliver the first oil cargo to buyers in the Persian Gulf by the end of September.
In a meeting with the members of Iran's Chamber Of Commerce, Industry and Mines in Tehran on Sunday, Oil Minister Rostam Qasemi said oil swaps are profitable for Iran.
Earlier in August, Qamsari said Iran signed the first deal on oil swap with a foreign company after a one-year hiatus.
Qamsari added that talks were underway with another reputed foreign company and it is expected the second contract will be signed soon. He did not name the companies involved.
The official expressed the country's readiness to conduct oil swap with all regional countries, saying the current swap volume is very low.
Given the high cost of oil storage, oil swaps should be increased to ensure that transactions are economically viable, he said, adding comprehensive marketing had begun in this respect.
The NIOC has made huge investment in both Caspian Sea and Persian Gulf's terminals, and in view of these infrastructures there is no need for any discount, the official noted.
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 Oil Ministry officials 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.
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 target markets.
Tehran plans to gradually increase the volume of oil swap with Caspian Sea littoral countries, director of the National Iranian Oil Company's (NIOC) International Affairs Department said.
Mohsen Qamsari said almost 500,000 barrels of crude oil have been delivered to Neka Port in northern Iran since the resumption of oil swap operations with Caspian Sea littoral states in July, Shana reported on Monday.
In early July, Managing Director of the NIOC Ahmad Qale'bani announced the resumption of oil swaps with Caspian states. He added that Iran was negotiating the volume of oil swap with its northern neighbors.
Qamsari said once the volume of the delivered crude reaches one million barrels, an equal amount will be ready for shipment via Iran's oil terminals in the Persian Gulf. He added the country plans to deliver the first oil cargo to buyers in the Persian Gulf by the end of September.
In a meeting with the members of Iran's Chamber Of Commerce, Industry and Mines in Tehran on Sunday, Oil Minister Rostam Qasemi said oil swaps are profitable for Iran.
Earlier in August, Qamsari said Iran signed the first deal on oil swap with a foreign company after a one-year hiatus.
Qamsari added that talks were underway with another reputed foreign company and it is expected the second contract will be signed soon. He did not name the companies involved.
The official expressed the country's readiness to conduct oil swap with all regional countries, saying the current swap volume is very low.
Given the high cost of oil storage, oil swaps should be increased to ensure that transactions are economically viable, he said, adding comprehensive marketing had begun in this respect.
The NIOC has made huge investment in both Caspian Sea and Persian Gulf's terminals, and in view of these infrastructures there is no need for any discount, the official noted.
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 Oil Ministry officials 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.
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 target markets.
© Iran Daily 2011
