On Sunday, Iran began an agreed oil swap with Iraq’s Kirkuk, according SHANA, the official news agency of Iran’s oil ministry. The swap started after the two neighbours sorted the logistic issues preventing its startup.

The swap deal sees Iran receive 30,000 to 60,000 barrels per day of oil from Kirkuk oil fields in northern Iraq to an Iranian refinery across the border via tanker trucks, in exchange for oil for southern Iraq.

On Sunday, the tankers offloaded their cargoes at storage tanks in Iran’s Darreh Shahr, the western province of Ilam, which were installed in the city by the National Iranian Oil Products Distribution Company (NIOPDC) for the purposes of the swap operation, the news agency said.

The oil is to be fed to Iranian refineries. The swap agreement is subject to renegotiation.

Based on cost, insurance and freight (CIF) sale terms, seller must pay the costs and freight includes insurance to bring the goods to the port of destination.

4th June 2018

4th June 2018