Iran, Indonesia to talk oil deal

Business Materials 27 May 2016 16:57 (UTC +04:00)

Baku, Azerbaijan, May 27

By Emil Ilgar - Trend:

Iranian Oil Minister Bijan Namdar Zanganeh will meet with Indonesian Energy and Mineral Resources Minister Sudirman Said on May 30 to discuss boosting energy relations, SHANA reported May 27.

Reportedly, Said is expected to negotiate purchasing LPG and crude oil from Iran.

Marzieh Riahi, the director general for Asia and Pacific affairs at the Iranian Oil Ministry's International Affairs and Commerce Division, visited Indonesia last month.

SHANA quoted her as saying that Jakarta is evaluating the feasibility of purchasing Iranian crude oil.

Iran can export 200,000 barrels per day of oil to Indonesia, said Iran's Minister of Economic Affairs and Finance Ali Tayebnia, IRNA reported May 19.

"There is a refinery in Indonesia that processes 120,000 barrels per day of crude oil, exactly similar to the Iranian oil, but we can supply more oil to the country," Tayebnia said in an interview with Indonesian state agency ANTARA.

According to the latest OPEC report, released May 13, Indonesia produced 731,000 barrels of oil per day in April. However, the country's oil consumption is about 1.7 million barrels per day (mb/d) and refinery output meets about 55 percent of the consumption of domestic oil products.

Iran's oil export decreased from 2.2 mb/d in 2011 to about 1 mb/d after imposition of the Western sanctions, but the elimination of the sanctions in January this year led to resumption of the export levels.

According to the International Energy Agency, Iran exported 2 mb/d of crude oil in April this year.