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Petroleum Export Deal to Iraq Finalized

Petroleum Export Deal to Iraq FinalizedPetroleum Export Deal to Iraq Finalized

Agreements have been finalized for the export of surplus petroleum products to Iraq by private firms, managing director of the National Iranian Oil Production and Distribution Company (NIOPDC) said, Tasnim news agency reported on Friday.

Seyed Naser Sajjadi said Iran will soon commence the export of three million liters of diesel to southern Iraq, in addition to six million liters of diesel and two million liters of kerosene to northern Iraq in the near future.

"There are plans to export approximately 12 million liters of surplus diesel and 40 million liters of mazut per day," Sajjadi noted.

Negotiations are also underway for oil byproducts exports to Afghanistan besides the Persian Gulf neighbors, the official said, adding that the National Iranian Oil Company (NIOC) is in talks for the export of petroleum products to Africa.

Following the launch of several phases of the South Pars gas field in the Persian Gulf last year and increase in natural gas output, gas has replaced mazut and diesel as feedstock in some refineries and power plants, consequently making room for export of the surplus of these products. In addition, the government has instructed power plants and refineries to use gas instead of more polluting feedstock such as mazut due to abundance of gas resources in Iran and the rise in SP gas extraction.

 

Financialtribune.com