Iran Expects Kazakh Oil Supplies to Double

The ambassador also said that the increase in supplies would be achieved under existing agreements and by signing new contracts, Interfax reported from Almaty.

The ambassador said that the Iranian side plans to sign three new agreements soon to swap oil with companies operating in Kazakhstan. However, he did not name these companies and said only that they include Kazakh and foreign companies.

The diplomat said that in 2003 oil supplies from Kazakhstan amounted to 50,000bpd, of which KazMunaiGaz accounted for 30,000bpd and PetroKazakhstan for 20,000bpd.

KazMunaiGaz announced earlier that it supplied 1 million tons of oil to Kazakhstan under a swap scheme in 2003 and plans to increase this to 2 million tons of oil under the same scheme in 2004. Kazakhstan supplies oil by tanker through the Caspian to the Iranian port of Neka, and in exchange receives the equivalent at the Iranian port of Kharg on the Persian Gulf.

In turn, PetroKazakhstan plans to increase oil supplies to Teheran Oil Refinery to the maximum contract level of 21,200bpd or 1 million tons per annum by mid-2004, the company said in a press release. PetroKazakhstan supplied the first 26,800 barrels of oil to Teheran Refinery at the end of December 2003.

The company's press service said that at the moment oil is supplied to Teheran Oil Refinery by rail only.

AF/IS

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MNA