Iran-KRG’s oil swap possible

Business Materials 5 September 2016 18:21 (UTC +04:00)

Baku, Azerbaijan, Sept. 5

By Emil Ilgar – Trend:

There are several options for selling Iraqi Kurdish Regional Government's (KRG) oil through Iran, but the only optimal way is swap operations, Mohsen Ghamsari, director of the International Affairs Department at National Iranian Oil Company, told SHANA Sep. 5.

He said KRG has requested Iran to help it export oil, but the deal hasn't reached a final result and the negotiations continue.

“Currently, KRG exports its (500,000 barrels per day) oil through Turkey, but they want to export oil by getting help from Iran as well,” he said.

Ghamsari said that transiting KRG’s oil via Iran’s pipelines needs new infrastructures, while, currently, the only way for transiting oil is tracks, which would cost heavily for KRG.

“However, swapping oil is possible pragmatically,” he said.

For several years, Iraq’s KRG and Iran have been in talks to construct a pipeline that would transport the northern Iraqi oil to Iran for swapping the region's crude in the Persian Gulf.

However, negotiations have lagged so far as the regional administration in northern Iraq instead focused on developing an oil export route through Turkey.