Tehran, Moscow to Sign Oil Swap Deals

Tehran, Moscow to Sign Oil Swap Deals
Tehran, Moscow to Sign Oil Swap Deals

An Iranian delegation is to visit Moscow to sign agreements on building refineries and conducting oil swap operations with Russian firms, the director of Iranian Oil, Gas and Petrochemical Products' Association (OPEX) announced.

Hassan Khosrojerdi said a delegation will visit Moscow in October to finalize the terms of the oil swap deal with Russians.

Earlier this month, Oil Minister Bijan Namdar Zanganeh and Russian Energy Minister Alexander Novak signed 4 economic and commercial agreements, including the construction of 8 new power plants in Iran by Russian firms.

Khosrojerdi stressed that Russians have a long history in constructing refineries. "Russia's advanced technology will help us reduce the production of heavy petroleum products in our refineries."

"The private sector deals with Russians in cases which the government cannot or does not want to partake," said Hassan Khosrojerdi, adding that the private sectors of both countries held talks along with the negotiations between the two governments, IRNA reported.

On swapping crude oil with Russians, he said, "The private sector is keen to participate in this sector should the government prepare the ground, although no agreements have been made with Russian firms yet."

  Upstream Market

Deals have been signed with Russian firms for joint investment in oil projects. Russians have expressed interest in Iran's upstream and midstream market and the two sides have agreed to cooperate in the form of a consortium, according to Khosrojerdi.

Russians are willing to participate in petrochemical and small refineries projects and supply parts and equipments that Iran is unable to manufacture domestically. Iran is also ready to share experience and knowledge with Russians.

  Exploring Oil Fields

A Russian company has expressed desire to carry out exploration in Iran's offshore and onshore oil and gas blocks, according to the National Iranian Oil Company (NIOC) director for exploration Hormoz Ghalavand.

"A Russian firm held talks with NIOC last month to explore Iran's oil and gas blocks after the lifting of the sanctions," he said. The name of the company has remained undisclosed.