Russia and Iran will work out routes for swap fuel supplies

MOSCOW, 6 Oct — PRIME. Russia and Iran are working on swap supplies of oil and gas, and are already working out routes and implementation mechanisms for this, Russian Deputy Prime Minister Alexander Novak told reporters.

“We are already working with them (with the Iranian side – ed.) in this direction, we are working on separate routes, mechanisms. This concerns oil and gas swaps,” Novak said when asked about the prospects for working with Iran on swap oil supplies.

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.