Iran receives 300,000 barrels of oil from Caspian littoral states to swap

Oil&Gas Materials 1 September 2011 13:25

Azerbaijan, Baku, Sept . 1 /Trend/

Iran received 300,000 barrels of oil from the Caspian littoral states in mid-July and will transfer it to Persian Gulf terminals in 90 days, SHANA reported quoting Managing Director of National Iranian Oil Company Ahmad Ghalebani as saying.

"We are negotiating to increase the volume of oil swap with new methods, and we seek to swap oil at fair price s ," he said.

The Neka oil terminal can supply 500,000 oil barrels to Tehran and Tabriz refineries.

After 13 years of oil swap with Caspian littoral countries to Persian Gulf via Iran, four major foreign companies - Germany's Select Energy Trading, Dragon Oil Emirate, Swiss Vitol and Ireland's Caspian Oil Development - refused to update oil swap agreement in April 2010 and Iran's crude oil swap rate dropped to zero.

From 1997 to 2010 Iran profited $146 million from the oil swap operations ($1 per barrel).

Earlier, the Iranian former o il minister urged to suspen d oil swap d ue to its economical unprofitability and in an effort to protect national interests.

The Caspian Sea holds 17-33 billion barrels of oil, and is estimated to give as much as 8,000 billion cubic meters of gas.