Ukraine, Iran consider oil deliveries

By  Trend

By Nigar Abbasova

Ukraine and Iran are considering the possibility of oil deliveries to refineries of Ukraine and Europe, a source in Ukraine’s Energy and Coal Industry Ministry told Trend.   

“Currently the ministry and Iranian side are studying the possibility of deliveries of Iran’s oil to meet the needs of Ukrainian oil refineries, as well as processing plants located in the Central and Eastern Europe,” the source said.

Nevertheless, the source didn’t not provide any details of negotiations, particularly those connected with delivery routes of Iranian oil and economic indices of the project.

Ukransnafta, national operator of Ukraine that provides services on oil transportation by pipelines to the Ukrainian refineries and its transit to the countries of Central and Eastern Europe, has recently reported about its intention to consider possibilities for the use of the company’s transport infrastructure to carry out transit of Iran’s oil to the countries of Central and Eastern Europe as well as supplies of raw materials for processing in the domestic market.

Iran's Oil Minister Bijan Namdar Zanganeh earlier said that Ukraine is interested in transiting Iran’s oil and gas to Eastern Europe, mentioning that Iran needs to study if it is economically justified to export a part of Islamic Republic’s gas and oil to Czech Republic and Slovakia through Ukraine.

Iran, which is considered to be one of the world’s top oil and gas producers with the world's fourth-largest proved crude oil reserves and the world's second-largest natural gas reserves, currently produces 3.65 million barrels per day (mbd), about 0.85 mbd more than in the sanctions era and still about 0.2 mbd less than pre-sanctions level.

Before the sanctions were introduced, Iran exported 2.3 mbd. The sanctions reduced the figure to 1 mbd. The economic sanctions against Iran were lifted on January 16. The Islamic Republic increased output by 0.4 million bpd following the lifting of sanctions and resumed exports to Europe, Asian buyers have also increased purchases.