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Legal Matters

Iraq: US sanctions not to influence Iran oil swap

Baghdad, Iraqi Oil Minister Jabbar al-Luiebi said that US sanctions will have no effect on Tehran-Baghdad oil swap agreement, according to Iraqi media 'Al Forat'.

Al-Luiebi made the remarks Friday in an interview with reporters on the sidelines of the 174th Meeting of the OPEC Conference held in Vienna.

'The crude oil exported from Iraq to Iran has been calculated as the price of electricity received from Iran and has not yet been exchanged,' he said.

We have just started transferring small amount of oil to Iran's refineries, but this is not the basis for the exchange, Al-Luiebi added.

Iran started swapping oil with Iraq's Kirkuk on June 3.

According to the CIF-based swap deal, Iran receives 30,000 to 60,000 bpd of oil from Kirkuk oil fields in northern Iraq to an Iranian refinery across the border via tanker trucks, in exchange for oil for southern Iraq, Iranian PetroEnergy Information Network 'Shana' earlier reported.

Decreasing costs of transporting oil to refineries in western and northern Iran and also receiving transit rights are among advantages of implementing the swap plan, said Shana.

Source: Islamic Republic News Agency - IRNA

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