IRANIAN ROUTE SEEN POSSIBLE OUTLET FOR CASPIAN CRUDE

An export route for early production from Caspian Sea oil fields by a western combine may be available if Iran can overcome political roadblocks from Washington. That's the theory of Middle East Economic Survey It said refining and distribution facilities in northern Iran may help solve export problems faced by Azerbaijan International Operating Co. (AIOC), which plans to develop Azeri, Chirag, and Guneshli fields (OGJ, Jan. 30, p. 31). MEES reckons AIOC is stalled on finding a hard

March 6, 1995

2 min read

An export route for early production from Caspian Sea oil fields by a western combine may be available if Iran can overcome political roadblocks from Washington.

That's the theory of Middle East Economic Survey It said refining and distribution facilities in northern Iran may help solve export problems faced by Azerbaijan International Operating Co. (AIOC), which plans to develop Azeri, Chirag, and Guneshli fields (OGJ, Jan. 30, p. 31).

MEES reckons AIOC is stalled on finding a hard currency export route for early oil production, estimated at 40,000 b/d by mid-1996.

"There is no question," MEES said, "that a scheme which involved the transportation of limited quantities of Caspian Sea oil to Iran for refining and distribution in the north of the country, in exchange for Iranian crude from gulf export terminals in southern Iran, is not only technically feasible but would require relatively little investment in terms of pipeline link-ups and other infrastructural expenditure."

Such a move would suit Iran too, MEES said.

National Iranian Oil Co. would be able to delay costly refinery upgrades, particularly at the 110,000 b/d Tabriz plant, because Caspian crude would help solve northern Iran's lack of light products.