Iraq-Iran Oil Swap Deal To Run For 1 Year

12 Dec 2017   Iran, Iraq

The oil swap deal that Iraq and Iran agreed to last week will run for one year and is subject to renegotiation, Iraq’s Oil Minister, Jabbar al Luaibi told media. The deal envisages the swap of up to 60,000 bpd of crude oil, with the Iraqi oil coming from the Kirkuk field in northern Iraq, which until recently was under the effective control of the Kurdistan Regional Government. After the Iraqi offense against Kurdistan following an independence referendum that Baghdad rejected, the central government of the country resumed control of the Kirkuk field, but no oil flowed from it. Now, Baghdad will transport between 30,000 and 60,000 bpd of Kirkuk crude by tanker trucks to the border with Iran, at Kermanshah. In exchange, Iran will supply the same amount of similar-grade crude to Iraq’s southern ports. In the future, the partners plan to build a new pipeline from the […]

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