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Private sector can participate in Iran’s oil, gas swap

Business Materials 8 May 2016 14:59 (UTC +04:00)

Baku, Azerbaijan, May 8

By Fatih Karimov - Trend:

The Iranian private sector companies can involve in oil and oil product swap, Amir Hossein Zamaninia, Iran's deputy oil minister for International Affairs, said.

He further said that Iran has held initial talks with Azerbaijan, Turkmenistan, Russia and Kazakhstan on crude oil swap, IRNA news agency reported May 8.

Oil and oil product's swap is among the priorities of Iran's oil ministry within the sixth five-year national development plan(2016-2021), Zamaninia said.

Diversifying the export markets, increasing the natural gas export, reducing the amount of flared gas by 50 percent, decreasing fuel oil production, increasing the recovery rate of oil fields and boosting oil, condensate and gas output as well as refining capacity of the country are also among the oil ministry's priorities, he added.

The Islamic Republic plans to resume swap of oil products, primarily natural gas liquids, with Azerbaijan, Turkmenistan and Kazakhstan following the removal of international sanctions.

Under oil swap agreements, which started in 1997 and were in place for over 12 years, Iran received crude oil of Azerbaijan, Kazakhstan and Turkmenistan in its northern port of Neka on the Caspian coast and delivered an equal volume to the clients of the same countries in Persian Gulf. Tehran would receive a transit fee from Caspian states over this.

The overall revenue obtained by Iran from 1997 to 2009 has been estimated at about $880 million.

The average daily swap was 90,000 barrels in 2009, which Iran planned to raise to 300,000 barrels per day by 2015.

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