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Iraq to Export 100,000 bpd of Basra Crude to Iran

Jamejamonline

August 18, 2007

Iraq’s Oil Minister Hussein al-Shahristani told a news conference in Baghdad Thursday Iraq will start exporting some 100,000 barrels a day of its Basra Light crude oil to Iran in accordance with a deal signed recently in Tehran, according to SHANA.

According to the deal, signed by al-Shahristani and his Iranian counterpart, Baghdad would sell the crude oil to Iran at international prices.
The crude would be shipped in a fleet of trucks to the Iranian refinery in Abadan, he said, according to Dow Jones.

In return, Shahristani said Tehran would start supplying Iraq with 1.5 million metric tons of kerosene a day and 1.5 million tons of gas oil a day.
Iraq and Iran have signed several deals in the past under which Tehran would supply Baghdad with oil products but Iran hasn’t fulfilled these deals, Iraqi oil officials said.

Iraq needs to buy at least 5,000 tons a day of oil products but finds it difficult to conclude deals.

The country suffers from acute shortages of oil products since the U.S.-led invasion in 2003.

The Iraqi State Oil Marketing Organization, or SOMO, tendered last month to buy 40,000 tons a month of LPG, and 15,000 tons of kerosene for delivery in the last five months of 2007.


:: Article nr. 35456 sent on 18-aug-2007 22:55 ECT

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