Iran-Irqai Oil Swap May Soon be Realized

Iran's strategy of importing crude oil from Russia, Kazakhstan and Turkmenistan for its northern refineries, and then swapping the barrels for Iranian Light crude at Kharg Island, could soon be implemented in Iraq, according to reports. This follows the agreement to build a small pipeline allowing Iraqi Basrah Light crude to be pumped to Iran's Abadan refinery, just across the border.

Iran could take up to 250,000 b/d of Iraqi crude for Abadan, the country's biggest and oldest refinery. In exchange, it could make similar volumes of crude available at the Gulf or, alternatively, supply Iraq with products, according to Hojatollah Ghanimifard, head of international affairs at state National Iranian Oil Co.