“Just for the [low] revenues, oil swap should not be halted. Even if [its revenues] stand at 2 cents we should not forsake it,” Zanganeh said.
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.
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.
Iran started its oil swap with the Caspian Sea and Central Asian states in 1997. Naftiran Intertrade Company (NICO), a subsidiary of the NIOC, is administering Iran oil swap operations.
Besides revenues and regional diplomacy, the oil swap project reportedly saves Iran the costs of carrying 500,000 barrels per day of oil from south to north of the country.
Analysts say Iran represents the best route for energy transfer in the region as this route is shorter and less costly than those of Russia and Turkey.
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