Minister of Oil Bijan Namdar Zanganeh noted that Iran has agreed to build a
pipeline from Bandar Imam to Iraq's Basra port in order to carry Iraqi crude oil to Abadan refinery and transfer oil products back to that country.
Once the two countries reach a final agreement on swapping Iraqi oil, the plan would be implemented. He told Petroenergy Information Network that the two countries have been discussing cooperation in energy sector for more than one year, adding, "We have offered a proposal for receiving about 370,000 barrels crude oil from Iraq to feed Abadan refinery."
The minister stated that Iran has agreed to build a pipeline from Bandar Imam to Basra (which is an import and export terminal for Iraq's crude and crude products) and the proposal will be brought up before the expected visit to Iran by Iraqi prime minister.
Zanganeh stated that the two countries are also considering a swap plan according to which Iraq will send its
crude oil to Abadan refinery and an equivalent amount of crude is sold on its behalf at Iran's Kharg terminal.
He said Iraqi officials are very interested in purchasing Iran's oil products and Iran is able to supply them with
kerosene,
liquefied petroleum gas (LPG), and fuel oil produced by Abadan refinery.
Zanganeh stated that Iraq is also interested in buying gasoline from Iran, however, due to
gasoline shortage in Iran and its imports from other countries selling Abadan refinery's
gasoline to Iraq is currently out of the question.
A spokesman of Iraqi ministry of petroleum had already announced that Iran and Iraq have reached an agreement on a pipeline to carry Iraq's oil to Abadan refinery.
He noted that the measure is aimed to offset
domestic fuel shortage in Iraq. The proposed pipeline will run for 40km from Iraqi oil fields in southwest of Basra to Abadan in Iran.
Iraq is currently pumping 2.5 million barrels crude per day of which 1.5 million barrels are exported.
