Russian oil firms after swap deals with Iran

Iran’s petroleum minister says Russian energy firms seek to make oil and gas swap deals with Tehran.

“Russia’s Oilluk is in talks to make a crude swap deal with Iran…Also, Gazprom is seeking to make arrangements for gas swap deal with Iran”, Bijan Zangeneh was quoted as saying by IRNA on Saturday.

Less than a week ago, Russian Deputy Minister of Energy Kirill Molodtsov said the oil swap deal between Iran and Russia remains at the level of preliminary discussions.

“Only discussions so far, nothing specific,” Molodtsov was quoted as saying by the Russian media.

Tehran has already signaled readiness for making gas and oil swap deals with its northern neighbors including Russia, Azerbaijan and Turkmenistan.

Iran supplies gas to its northern regions from the country’s oil-rich south. The proposed swap deals would help to cut its transportation costs.

Under the proposed oil and gas swap deals, Russia would supply gas and oil to Iran’s north and receive equal amounts from the country’s south.

Boosting energy ties

The Iranian petroleum minister also said Tehran and Moscow signed a number of agreements on developing oilfields in Iran during Russian energy minister’s recent visit to Iran.

“RussNeft company seeks to participate in developing four (Iranian) oilfields including South Azadegan field,” Zangeneh said.

Iran signed a memorandum of understanding (MoU) with Russia’s Gazprom Neft to launch exploration studies on two key oil fields in the country’s west.

Based on the MoU Gazprom Neft would study the development of Changuleh and Cheshmeh Khosh oil fields in Ilam province.

Changuleh - which sits on Iran’s border with Iraq is seen as one of Iran’s emerging top oil project prizes.

Iran and Russia have boosted efforts to foster energy ties following the removal of sanctions imposed on Tehran over its nuclear energy program.

Iran sits on the world's fourth-largest oil and second-largest gas reserves.

The country plans to increase its crude output to pre-sanctions levels of more than 4 million barrels per day.

In late November, the Organization of the Petroleum Exporting Countries (OPEC) clinched a deal to cut oil output to a ceiling of 32.5 million barrels a day (bpd) in line with efforts to prop up crude prices.

The oil cartel agreed to decrease its production by 1.2 million bpd.

OPEC exempted key member Iran from cutting output, allowing the country to increase its crude production by 90,000 bpd to reach pre-sanction output levels.

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