Kazakhstan to increase oil supply to Iran under swap deal

Kazakhstan plans to ramp up its supply of crude oil to Iran under a swap deal that allows the former Soviet state to diversify its oil export routes away from Russia.

According to Press TV, Kazakhstan’s Energy Minister Bolat Akchulakov said on Wednesday that the country is intent on implementing plans to diversify its oil exports routes, including by increasing supplies to Iran and China.

Under a current swap arrangement, Kazakhstan supplies crude oil via tankers from Aktau to Iranian ports in the Caspian Sea for the purpose of consumption in refineries in Tabriz and Tehran in northern Iran.

Iran then commits to supplying the same amount of crude oil to tankers in the Persian Gulf for the purpose of delivery to Kazakhstan’s oil customers.

Kazakhstan currently exports nearly 80% of its oil via the Caspian Pipeline Consortium (CPC) to Russian Port of Novorossiysk on the Black Sea.

However, Kazakhstan’s President Kassym-Jomart Tokayev announced last summer that his country will move to diversify away from the CPC and increase its supply of crude oil to other markets.

The plans are mainly aimed at China, a country which imported only $1.9 billion worth of crude and oil products from Kazakhstan in 2021. 

Akchulakov was quoted as saying by inbusiness.kz that Kazakhstan has also plans to increase its oil exports via Azerbaijan to Georgia, Turkey and other countries.

ME