Iran, Russia plan to ink deal on oil sales
By Kamila Aliyeva
The talks between Russia and Iran on oil and gas contracts are at an advanced stage and Iran awaits proposals on contracts from Russian companies.
Tehran plans to sign a deal with Moscow within the next 10 to 15 days to sell 100,000 barrels per day of oil to Russia, Iranian Minister of Petroleum Bijan Zangeneh said, PressTV reported.
Zangeneh, briefing the media on his meeting with Russia’s Energy Minister Alexander Novak in Tehran on Tuesday, said that the deal would provide Iran with an opportunity to find new customers.
Zangeneh added that Russia had expressed its willingness to cooperate with Iran for long-term regulation of the country’s oil market.
"During the meeting, we agreed to hold a workshop in Moscow over the next few weeks on the new model of Iranian Oil Contracts,” he said, mentioning that Iran waits for proposals, technical conditions and financial parameters.
Several Russian companies, including Gazprom, Lukoil, Zarubezhneft and Tatneft made preliminary agreements with Iran for exploration of oilfields. In order to start production companies should make contracts of a new type that has not yet been approved by Iran’s parliament. The main difference of the new type of the contract is in making possible for foreign investors to hold a stake in a project.
An opportunity of oil-for-goods swamps was also mulled at the meeting. "We discussed swap deals. Oil for goods," Iran’s minister said.
The progress in implementing the oil production limiting agreement was also discussed, he added.
Russia and Iran can implement the "oil-for-goods" deal despite lifting of sanctions earlier imposed on Iran, Novak said earlier.
Oil swaps make possible for Iran to optimize oil deliveries to refineries in the north of the country because the greater portion of oilfields is concentrated in the South Iran.
Before the introduction of sanctions, Iran was an active participant in swap operations, which began in 1997 on the basis of signed contracts. From 1997 to 2009, the total income received by Iran from these swap transactions amounted to $880 million.
Iran has natural gas reserves of 34 billion cubic meters, almost 40 percent more than Qatar, the world’s biggest exporter of liquefied natural gas, according to BP Plc.
The Islamic Republic is producing about 700 million cubic meters per day (mcm/d) of gas, while the country has planned to increase this volume to 1,300 mcm/d by 2020.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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