Novak announces plans to sign swap deal with Iran

MOSCOW, 6 Oct — PRIME. Russian Deputy Prime Minister Alexander Novak said he expects to sign an agreement with Iran on swap supplies of oil and gas by the end of the year.

“I’m counting on it,” Novak replied to a question from journalists whether an agreement with Iran on oil and gas exchange operations could be concluded before the end of 2022.

He noted that work is underway in this direction, ministries and companies are interacting.

“Technical details are being worked out. Issues in transport, logistics, prices, and tariff setting. That is, these are commercial contracts that should be worked out in detail. Our economic operators are working in this direction,” Novak said.

The agreement on swap operations with Iran at the first stage may cover 5 million tons per year of oil and up to 10 billion cubic meters of gas, he also said.

The National Iranian Oil Company (NIOC, INOC) and Gazprom signed a memorandum in July that provides for assistance in the development of the Kish and North Pars gas fields, six oil fields, as well as in maintaining pressure at the South Pars field. In addition, the document covers exchange operations with natural gas and oil products, the implementation of LNG projects, and the construction of export gas pipelines.

Iran’s Shana agency said the size of a potential deal between the companies is $40 billion.

Iranian Deputy Oil Minister Ahmad Asadzade told RIA Novosti that his country, within the framework of this memorandum, expects to conclude several agreements with the Russian Federation in the oil and gas sector within six months, and hopes for greater unity with Moscow on the situation in the field of energy resources.