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Boosting Oil Swaps on the Agenda, NIOC Official

(Sunday, October 6, 2013) 12:05

TEHRAN Oct 06 (Shana): NIOC’s director for international affairs, Seyyed Mohsen Qamsari, says negotiations are underway with littoral states of Caspian Sea for boosting the volume of oil swaps.

Speaking to Shana, Qamsari said that Iran enjoys a comprehensive technical facilities and infrastructures for boosting oil swaps.

He added in the international markets neither buyers nor sellers give assurances on continuation of oil swaps but it is competition that plays a decisive role in this regard and that is why Iran can offer its existing infrastructures for oil swaps with the oil producing countries in the Caspian Sea region.

‘The existing infrastructures littoral states of the Caspian Sea having access to are adequate for oil transfer to European markets but at the same time they can transfer their oil through Iran territory to Asian markets where the oil prices are higher by two dollars’, Qamsari told Shana.

Existing capacity for swapping 300 thousand barrels per day of oil in Caspian Sea region is a good advantage for Iran; the official said adding the country possesses necessary infrastructures in the south of the country for delivery of similar amount of oil it takes in the north.

According to Qamsari, despite some ups and downs oil swaps with Caspian Sea states are underway.

Previously Iran’s Oil Terminal Company’s (IOTC) managing director had reported of establishment of a comprehensive pool in Neka port on the Iranian shores of Caspian Sea consisting of multi-purpose piers, repair facilities and installations for mooring oil tankers with 14 thousand tons of oil to facilitate oil swaps.

Oil swaps between Iran and littoral states of Caspian Sea started in 1997 for the first time. Low cost of oil transfer, security of the route and boosting cooperation between the regional states are some of advantages of oil swaps. It also could remove the cost of transfer of 500 thousand barrels per day of oil from south of the country to its oil refineries located in the northern half of the country including to Tehran, Arak and Tabriz oil refineries.