Iraq begins exporting Kirkuk oil to Iran after long delay

Iraq begins exporting Kirkuk oil to Iran after long delay

 

 Iran will soon receive its first shipment of Kirkuk oil after a long delayed deal with Iraq came into effect, according to Tehran’s oil ministry.

“Kirkuk’s crude oil will be sent first to Darreh Shahr in Ilam, and then it will be sent to Lorestan and later to Kermanshah’s refinery factory,” Abbas-Ali Jafarinasab, chief executive of the Iranian Oil Pipelines and Telecommunications Company (IOPTC), told IRNA news agency on Sunday.

The refined oil will be sent to Tabriz and Tehran for consumption, Jahfari added.

Iran signed the oil swap agreement with Iraq’s State Organization for Marketing of Oil (SOMO) in November 2017, a month after the Iraqi army and Shiite militias seized control of Kirkuk province in October.

Under the agreement, Iraq agreed to export around 30,000 to 60,000 barrels of Kirkuk oil per day in exchange for the same amount of refined Iranian oil delivered to its southern provinces.

Iran sought the import of Kirkuk oil as the fields are located much closer to its northern provinces than its own oil fields in the south, saving vast sums on transport costs.

The distance from Kirkuk to Lorestan is 31 kilometers, a much shorter distance compared to Iran’s main oilfields in Khuzestan province.

The implementation of the deal had been set back amid security concerns. A number of attacks by ISIS sleeper cells on oil facility workers in Kirkuk and Hashd al-Shaabi paramilitias in the area led Iran to request additional security measures on the border. 

The Kurdistan Region has only one oil pipeline that connects its oil to Turkey’s Ceyhan port. Iran and Kurdistan Region do not have any oil pipelines, so it must be transferred by tanker trucks.

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That's increase and makes good business sense in the 21st century economy.

 

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Yeah, but they have to truck it all, and it's not necessarily secure. 

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don't worry my friend Trader Tate to this because we are forcing to cooperation with Iran

 

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On 6/8/2018 at 8:54 AM, saud hashm said:

Under the agreement, Iraq agreed to export around 30,000 to 60,000 barrels of Kirkuk oil per day in exchange for the same amount of refined Iranian oil delivered to its southern provinces.

What if instead of being consumed by the southern provinces the oil is exported ?

Will this swaped iranian oil still be considered as iranian oil subject to the US sanctions or is it turned into iraqi sanctionless oil ?

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