Naftiran Intergraded Company Sàrl, Swiss-based subsidiary of the National Iranian Oil Company (NIOC), and France’s Total will sign oil swapping deal for around 200,000b/d. This agreement signals the revival of oil swapping between Tehran and Caspian Sea countries, reported Iran Daily.
Oil swap between Iran and Caspian producers was suspended in 2010, halting a process which saw Iran importing 100,000b/d of crude into its Caspian ports and delivering equivalent volumes on behalf of its partners in the Persian Gulf, according to Today.Az. Furthermore, the world’s largest oil trader Vitol and BP have also held successful oil swap negotiations with NIOC.
In related news, Tehran stated that work is underway to increase the Neka port’s swap capacity from the current level of 120,000b/d to 2.5mb/d.
Total is currently lifting up to 200,000b/d of Iranian oil which is going to its European refineries under a deal signed in January. The French company has also signed a confidentiality agreement with NIOC to examine development of Iran’s massive South Azadegan Oilfield as well as a Memorandum of understanding (MoU) to build a petrochemical plant in southern Iran.