The National Iranian Oil Company has started swapping Russian petroleum products from Turkmenistan, managing director of the state-run firm said.
"NIOC is receiving Russian oil byproduct consignments in Turkmenistan and transferring them to specific targets," Mohsen Khojastehmehr was also quoted as saying by ILNA.
Several contracts have been concluded between NIOC and Russian firms with the aim of swapping their products and more deals will be signed in the future, he added.
The NIOC chief said swapping petroleum products with Russia will encourage other countries in the region to sign contracts with NIOC and use Iran’s capacities in this regard.
According to the official, transferring Russia’s natural gas to the Persian Gulf and then to India requires massive investment and preliminary studies are being conducted.
Considering the availability of equipment and pipelines in the country, Khojastehmehr said the government is keen on commencing swap operations with northern neighbors.
“Iran is willing to swap oil and gas from Caspian Sea littoral states, provided that Russia, Azerbaijan, Kazakhstan and Uzbekistan also take measures and cooperate with Iran in this regard,” he said.
“Ties between Iran and Russia have been growing in recent years in political, economic, trade and energy fields.”
In January, Iran started transferring 5 mcm of Turkmenistan’s natural gas per day (2 bcm per year) to Azerbaijan, based on a trilateral agreement reached last November, and a new contract with Russia will raise Iran’s gas swap capacity.
Of the total volume of gas received from Turkmenistan, about 20% are Iran’s share as swap fee and the rest will be delivered to Azerbaijan.
Stressing the significance of relations with Moscow, Khojastehmehr said there were favorable capacities for broader cooperation between the two countries, especially in transportation, technical and engineering services and electrical engineering, as well as oil and gas fields.
Several rounds of talks have already taken place between Iran and Russia, focusing on the development of energy cooperation.
