Iran started oil swaps with Iraq's Kirkuk on Sunday after the two neighbors resolved their logistic issues preventing the swap's startup, Shana reported Thursday.
According to the cost, insurance and freight (CIF)-based swap deal, Iran's refinery across the Iran-Iraq border receives between 30,000 and 60,000 barrels of oil per day from Kirkuk oil fields in northern Iraq via tanker trucks, in exchange for oil supplies for southern Iraq.
Shana reported that the tankers offloaded their cargoes on Sunday at storage tanks in Iran's Darreh Shahr in the western province of Ilam.
For the purposes of the swap operation, the National Iranian Oil Products Distribution Company (NIOPDC) installed the tanks in the city.
Based on CIF sale terms, the seller must pay the costs and freight including insurance to bring the goods to the port of destination.
'The oil is to be fed to Iranian refineries and the swap agreement is subject to renegotiation,' Shana reported.
By Huseyin Erdogan