Canadian firm to establish stake in Iranian oil swap business
(MEBG) – Canada-based Tracer Petroleum is poised to play key role in Iran’s oil swap business, following the signing of a memorandum of understanding with the Iranian Rose Qeshm Company, reported the Iran Daily on July 22.
According to the newspaper’s sources, Tracer’s preparations for the final agreement have already begun. Tracer and RQC intend to form a partnership that will to undertake crude oil swaps in Iran. It is anticipated that the Canadian will likely own a 25-percent interest in the partnership, either directly or through a new, wholly owned subsidiary.
The partnership will also be mandated to import refined petroleum products into Iran; procure products, services and equipment for the National Iranian Oil Company (NIOC) and the Iranian Oil Ministry; and undertake other significant business ventures in Iran on behalf of Iranian government companies and ministries.
At present, over 750,000 bpd, which constitutes more than half of Iran's domestic consumption, is transported from fields in southern Iran to refineries in the north by way of oil swaps
Through these swaps, the Tracer/RQC partnership will arrange to import crude from Kazakhstan, Russia, Azerbaijan and Turkmenistan into northern Iran, and will receive payment in kind through Iranian crude delivered from Persian Gulf ports.
© 2000 Mena Report (www.menareport.com)