C.I.S. MEMBERS SEEK OIL AND GAS SUPPLIES FROM MIDDLE EAST

Other members of the Commonwealth of Independent States are turning to the Middle East for oil and gas because of reduced imports from Russia. Ukraine, the second most populus C.I.S. member, recently disclosed plans to import 80,000 b/d of Iranian crude this year (OGJ, Feb. 24, p. 38). The republic's imports of Iranian oil could rise to 1 million b/d - Ukraine's entire needs - following construction of a proposed large diameter pipeline crossing the former Soviet Republic of

March 2, 1992

3 min read

Other members of the Commonwealth of Independent States are turning to the Middle East for oil and gas because of reduced imports from Russia.

Ukraine, the second most populus C.I.S. member, recently disclosed plans to import 80,000 b/d of Iranian crude this year (OGJ, Feb. 24, p. 38). The republic's imports of Iranian oil could rise to 1 million b/d - Ukraine's entire needs - following construction of a proposed large diameter pipeline crossing the former Soviet Republic of Azerbaijan, Moscow's Izvestia newspaper reported.

In addition, Moscow's BizEkon News quoted a Nezavisimaya Gazeta report that a delegation from Belarus was in Kuwait late last month to arrange for the chase of Kuwait oil. Before that, the delegation traveled to Iran and the United Arab Emirates.

A few days later, Tass news agency said Russia and Kuwait signed an agreement in Moscow whereby Russia agreed to send "oil workers and ecology and sea water desalinization experts" to work in Kuwait. Kuwaiti businessmen acquired the right to invest in the Russian economy. It's the first such, agreement with a Middle East country.

SUPPLIES FROM IRAN

Izvestia said plans call for construction by a summer of a preterminal" at Ukraine's Black Sea port of Odessa to unload ta carrying "Arabian" Oil.

Russia's inability to supply Ukraine with needed volumes of oil and gas during 1991 and this year forced Kiev officials to start an urgent search for other energy sources.

Ukraine said Russia earlier Promised to deliver 800,000 b/d of crude 1 this year, but a contracts for only 120,000 b/d had been signed early February.

The deal by Ukraine and Azerbaijan with Iran is one of the biggest energy related contracts in recent years, Izvestia said. It also has considerable political importance, the newspaper declared.

Cost of the three pipelines which will carry Iranian crude and gas across Azerbaijan to Ukraine has been estimated at $7 billion of Izvestia said delivery of Iranian fuel will help relieve political and economic tensions that have developed between Russia and Ukraine because of the latter's dependence on Russian crude.

Last December and January, Russia also failed to supply Ukraine with 600,000 metric tons of heavy oil. That forced the shut-down of some Ukrainian power "Plant units and caused virtual blackouts in cities.

Izvestia said 106 bcf of Iranian gas will be delivered to Ukraine this year, apparently via the existing pipeline from Iran to Azerbaijan. First of the proposed new gas pipelines from Iran to Ukraine is expected to be completed in 1995.