Deputy oil minister: Poor decisions cost Iran its old swap partners
Baku, Azerbaijan, Jan. 11
By Rahim Zamanov - Trend:
By making poor decision, Iran has lost its old oil swap partners, Deputy oil Minister Mansour Mo'azzami said on January 11, the ISNA News Agency reported.
"Iran is currently looking for new markets for oil swap," he added.
"Oil swap was halted during the country's previous administration in office," Mo'azzami explained, adding that the partner companies have now laid official complaints against Iran.
The minister went on to say that Iran has lost its great share in the region's oil swap.
The Managing Director of the National Iranian Oil Products Distribution Company (NIOPDC) Mostafa Kashkouli said on November 22 that Iran is not using its full capacity for oil swap and bunkering.
Kashkouli also said on November 22 that oil swap and bunkering could be very profitable for Iran, the IRNA News Agency reported.
"Iran needs to find some ways to benefit from this economic capacity as much as possible," Kashkouli said.
Mohsen Qamsari, director for international affairs at National Iranian Oil Company (NIOC), said in October that Iran can handle the swap of 300,000 barrels per day (bpd) of crude oil with the Caspian Sea and Central Asian states, Press TV reported.
Iran started its oil swap with the Caspian Sea and Central Asian states in 1997.
Besides revenues and regional diplomacy, the oil swap project saves Iran the costs of carrying 500,000 bpd of oil from south to north of the country to feed Tehran, Arak and Tabriz oil refineries.
Analysts say Iran represents the best route for energy transfer in the region as this route is shorter and less costly than Russia, Turkey and China routes.
Iran plans to develop the coastal infrastructure at its northern port city of Neka, situated some 200 kilometers (124 miles) north of Tehran, and raise its oil swap capacity.
It has started the development of the offshore pool at Neka oil terminal to meet the needs of merchant shipping fleets and also raise the oil reception capacity of the site.
Iran imports oil from Central Asian countries to be refined at Tehran and Tabriz oil refineries and then delivers an equivalent amount of oil to potential buyers in the Persian Gulf.