Iran eager to participate in Iraqi oil sector

Jul 19, 2004 02:00 AM

Iran is determined to cooperate with Iraq in building refineries and transfer of crude from the war-shattered country, the foreign ministry said.
"Iran-Iraq relations are expanding and we hope that the ties would get promotion once a reconstruction seminar is held," the ministry spokesman Hamid-Reza Assefi told. The seminar is scheduled for August. He stressed the need for establishment of stability and security in Iraq.

Iran can contribute substantially to developing Iraq's oil industry but the United States is blocking such help on political grounds. At the international donor’s conference on Iraq in Madrid last year, Iran offered to contribute to the reconstruction of its war-torn neighbour if Washington did not stand in the way.
An initial arrangement foresaw the transfer of 350,000 bpd of Iraqi light crude to Abadan Refinery in southwest Iran near the Iraqi border. Then, an equivalent amount of light crude would be sold on behalf of Iraq.

So far, the two countries' oil industry exchanges have been limited the export of a limited amount of Iranian oil products to its neighbour to alleviate shortages.
Iran currently has the capability for refining 180,000 bpd of Iraqi crude. That capacity can be raised to 320,000 bpd with minor adjustment at very low cost.

Assefi also turned to Iran's nuclear dossier and said: "Our efforts are within the framework of transparency and honest cooperation. Of course we insist on our sovereign rights and do not renounce them."
"We have made clear to the International Atomic Energy Agency what we have done and what we intend to do."

Source: Tehran Times
Market Research
Upcoming Conferences