Iran Prepares to Ink Oil Deal with Iraq--Daily Star

[Gloria]

In the new World Media Watch up now at http://www.zianet.com/insightanalytical
Tomorrow at Buzzflash.com

(NOTE: the comments about the Kirkuk oil fields!!)


1//The Daily Star, Lebanon Tuesday, July 19, 2005

http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=16878



IRAN PREPARES TO INK OIL DEAL WITH IRAQ

Tehran set to purchase 150,000 bpd from Basra in exchange for refined products

By Nora Salim
Special to The Daily Star

BEIRUT: Iran is poised to sign an agreement to swap Iraqi crude for desperately needed refined products, Oil Minister Bijan Namdar Zanganeh said Monday as Iraqi Prime Minister Ibrahim Jaafari wrapped up a landmark visit. To further economic ties with its neighbor, Iran plans to fund three pipelines across Iraq's southern border to help satisfy the country's urgent need for petroleum and refined oil products.



Iraq will export crude oil to Iran, and Iran will transport petroleum and other refined products to its neighbor.


(snip)

Oil will begin flowing ten months after the two countries sign the deal, which is expected within the month.



"The plan is for Iran to buy 150,000 barrels per day of light crude from Basra (in southern Iraq)," said Zanganeh. There has been talk of requesting that Kuwait, Saudi Arabia, and Qatar engage in a similar exchanges with Iraq to prepare for the looming oil products shortage expected in Iraq this winter.



Experts argue that declining crude oil qualities are the result of overpumping. Analysts believe that poor reservoir management practices during the Saddam Hussein years - including reinjection of excess fuel oil, refinery residue, and gas-stripped oil - may have seriously, or even permanently, damaged the Kirkuk oil fields in the north.




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