Iran working on oil swap plan with KRG

Iran says it is working on a plan to establish a crude oil swap scheme with Iraq’s Kurdistan Regional Government (KRG) similar to the one already in place with Caspian littoral states.

Abdolrassoul Mirzaei, the board chairman of Raham Refinery, told the media that the plan envisages importing 100,000 barrels per day (bpd) of oil from the KRG to be refined at Raham as well as Tabriz refineries. 

Iran will accordingly deliver an equal volume of oil with close technical characteristics to international clients on behalf of the KRG at its southern ports, IRNA reported. 

Mirzaei said Iran is to the same effect is negotiating with an Austrian company over the development of Phase Two of Raham Refinery whose feed of 50,000 bpd will be provided through imports from the KRG.

The official did not name the Austrian company but emphasized that it could provide its refining license for Raham Refinery and could also invest in the project which is expected within the next three years. 

The refinery will have the capacity to produce 300,000 tons of tar each year, Mirzaei added. 

Iran announced in mid-August that it will soon resume a unique scheme to swap the crude oil of several Caspian states with its own in Persian Gulf ports – a scheme that had been halted since 2010.

SS