Switzerland’s Vitol to buy Iran, Russia swap oil

An oil official has announced that Vitol S.A. of Switzerland is likely to purchase Russian crude to be swapped through Iran’s largest oil terminal in the Caspian Sea.

Despite the seven-year hiatus in oil swaps among Caspian Sea littoral states through Iran’s route, the process has not been resumed yet though negotiations are still underway with countries like Russia, Turkmenistan, Kazakhstan and Azerbaijan Republic.

Meanwhile on Thursday, a Swiss delegation comprising representatives of Vitol S.A. visited facilities and infrastructures of Neka Oil Terminal as Iran’s largest crude terminal in the Caspian Sea.

The visit aimed to resume oil swaps especially in view of the fact that the Swiss firm held cooperation with the National Iranian Oil Company (NIOC) before the halt in crude swaps.

BP (British Petroleum) is yet another company looking forward to resumption of oil swaps between Caspian Sea stated and the Islamic Republic of Iran.

Hamidreza Shahdoust, a local Iranian Oil Terminals Company (IOTC) official in the city of northern city of Neka, confirmed the visit of Vitol delegation to Neka Oil Terminal adding “experts at the oil trader giant Vitol made a visit to the Iranian terminal aiming to resume oil swaps.”

The official estimated that oil swaps will be resumed from Neka terminal within the next 7 to 14 days as all facilities at the Iranian terminal are prepared for the mission.

“Neka Oil Terminal enjoys a total storage capacity of 120 thousand barrels per day in its 12 tanks,” underlined Shahdoust maintaining “moreover, the project to increase oil swap capacity to 2.5 million barrels per day has kicked off.”

Oil Minister Bijan Zanganeh, while pointing to Iran’s readiness for oil swap with Russia, had earlier noted “the Russian side has also voiced willingness for swapping a portion of its oil production through Iran’s route and relevant negotiations are underway.”

“The capacity exists for a maximum swap of 150 thousand oil barrels per day,” underlined Zanganeh stressing “the process would boost Iran’s market share since the replacement is delivered to customers in the Persian Gulf.”

Share your view!

Leave a Reply

Your email address will not be published.