Russian company to discuss oil and gas swap with Iran

Business Materials 2 November 2015 15:46 (UTC +04:00)

Baku, Azerbaijan, Nov. 2

By Umid Niayesh - Trend:

Representatives of a Russian company are scheduled to visit Iran to talk about oil, gas and oil product swaps, according to Amir Hossein Zamaninia, the Islamic Republic's deputy oil minister.

He did not reveal additional information about the company or the date of the visit.

Russian firms are keen to participate in developing oil and gas fields in Iran and projects for increasing Iranian oilfield recovery rates, Zamaninia said, as reported by the oil ministry's official SHANA news agency on Nov. 2.

However, the two countries have not yet reached agreement on specific projects, he added.

After introducing Iran's new model for oil contracts and presenting the projects, the sides will later discuss opportunities for cooperation.

Iran is expected to unveil its new oil contracts model - Iran Petroleum Contract or the IPC - to international investors in Tehran this month. The IPC will be a modification of the traditional buy-back risk service contracts and has been specifically designed to increase the attractiveness of Iranian oil projects for foreign investors.

The issue of oil and gas swaps was discussed during the visit of Russian Energy Minister Alexander Novak to Tehran last month, Zamaninia said, adding that the two parties emphasized concluding contract negotiations on the issue.

Prior to the introduction of sanctions, Iran was an active participant in swap operations, which began in 1997 on the basis of signed contracts.

From 1997 to 2009, total income received by Iran from these swap transactions reached some $880 million.