Friday, October 7, 2011

Iran Announces Oil Pipeline Deal with S. Korea

The National Iranian Oil Company (NIOC) announced today that it has signed a 3.5 billion dollar deal with an unnamed South Korean company to construct a 1,680km oil pipeline linking Iran’s Caspian Sea port of Neka to Jask, an Iranian port in the Sea of Oman. The pipeline would facilitate oil swap between Iran and the oil-rich Caspian Sea littoral states. No dates for the start or completion of the project were released [Mehr News Agency, 7 October].

Iran is planning to raise the volume of oil swapping with the Caspian countries from the present 25,000 barrels per day to 200,000 bbp by the end of current Iranian calendar year (March 2012), and with the new pipeline it can substantially increase that volume. The Central Asian countries would benefit from the deal by selling oil at Jask.


Anonymous said...

We heard about these types of Deals before with zero outcome.
Lots of contracts have fallen through example the Oil Deals they had with Japan and China.
Now this and how will they receive cash payments from S.Korea unless they do barter Deals with them.
All talk and empty promises and then gone with the wind.
Harfe Bod as the saying goes.

Anonymous said...

This is another example of how sanctions help Iran. Had sanctions barred the Korean company, Iran would have no choice but to hire the Iranian company that competed for this bid (and lost because they couldn't do the work as efficiently as Korea).

Anonymous said...

It is a good news for iran
a Capean- Oman See Projekt ist a very good ida.

as usual if a succcess story appears, then coming a lot of denier , envier posting.
so call in Persian
2Hassod ziayd hast"

Anonymous said...

No other country in the world could do this!

Go Iran Go!

Nader Uskowi said...

Anon 10:41 AM,

The construction of trans-Iranian pipeline is a major step to link the Caspian and Central Asian oil fields to deep ports serving supertankers. But pls educate me why no other country of the world could do this? Are you referring to the construction of a 1,600km pipeline? What is so phenomenal about it? The question is, Why does Iran need a South Korean company to build a pipeline on its soil? What’s going on?

Anonymous said...

Anon 10:41 AM

"No other country can do this!"

So if no country can do this how come South Korea is building the pipeline?

Anonymous said...

I think he means no other country could link the Caspian sea to the Persian Gulf. Which is true.

Anonymous said...

I think he means that no other country would announce this as if it were some kind of big deal.

Either that or no other country is in the position of not being able to get paid for all the oil that they're sending to South Korea...and no other country has to work out a this kind of barter deal

Steve said...

Central Asian countries could largely benefit from this oil transit opportunity (it seems NOT to be an oil swap, as the incoming oil at Neka is also that one which later will be sold at Jask). Anyway, it will make Central Asian countries less dependent on customer countries in their immediate vicinity. But only if Iran doesn't charge too high transit fees.
Interesting to note that South Korea wants to invest in that oil pipeline. From this I conclude South Korea to be the single largest buyer of that oil in the future.

Anonymous said...

Why Jask? There are no large port facilities that have the infrastructure to support these tankers.

Anonymous said...

NO COUNTRY CAN AFFORD IT !in reply to Mr Nader.

-IT IS VERY TRUE NO COUNTRY THAT IS UNDER SANCTION CAN AFFORD TO WRIGGLE OUT to come up with such a huge economic venture.
-YET COURTING SOUTH KOREA TO make this venture possible is sheer brilliance!.IRAN has the capacity to do the job just alone,but then courting a foreign country means opening up to foreign investment with so many benefits!!

Anonymous said...

I would have thought that it would be Chahbahar that would have been the final destination and not jask.

But perhaps Jask is intended as an oil port outside of the PG, with Chahbahar having a different role.

Anonymous said...

Anon 7:03 AM

-YET COURTING SOUTH KOREA TO make this venture possible is sheer brilliance!.IRAN has the capacity to do the job just alone,but then courting a foreign country means opening up to foreign investment with so many benefits!!


what benefit? South Korea is buying all the oil Iran can ship to it already....and not sending any money back to Iran because of the sanctions.

having Koreans build Iran's pipeline means that either iran is going to have to send money to the Koreans or have the Koreans just wipe out part of the debt they owe Iran.

It's Korea that profits from this. There's nothing of real benefit for Iran.

Anonymous said...

Anon 5:53 AM

Spot on!
Iran will benefit zilch.
Only mullahs benefit from Iran's pain.