Iran to provide Iraq with oil products

Published November 23, 2003

KUWAIT, Nov 22: Iran on Saturday agreed in principle to provide former foe Iraq with refined petroleum products to help cover expected winter shortages, and may get Iraqi crude oil in return, an Iraqi oil ministry official said.

Aism Jihad, the Iraqi oil ministry spokesman, told Reuters in Kuwait by telephone from Tehran that a joint Iranian-Iraqi committee also will soon study a plan to link the two countries’ oil products and gas networks to facilitate the exchange.

An agreement was reached for Iran to provide Iraq with what it needs of oil products to confront the coming winter season, Jihad said. They will ship LPG (liquefied petroleum gas), petrol and kerosene as soon as possible.

The agreement was reached on Saturday after talks in Tehran between Iraqi Oil Minister Ibrahim Bahr al-Uloum and Iranian counterpart Bijan Zanganeh, Jihad said, adding the joint committee was studying the mechanisms of implementing the deal.

The committee is studying the linking of the networks for gas and oil products which will facilitate the exchange operations and boost this cooperation, Jihad said.

Asked what the Iranians will get in return for the refined products, Jihad said: This has not been finalised. They may get Iraqi crude.

Iraq and Iran fought a war between 1980 and 1988.

Bahr al-Uloum, who plans to return to Iraq on Sunday, has toured other Gulf Opec states Kuwait, Saudi Arabia and Qatar.

Kuwait has agreed in principle to provide Iraq with refined petroleum products in exchange for Iraqi natural gas and the Iraqi minister has also said that he relayed a similar request to the Saudis and Qataris to head off a looming oil products shortage in his country this winter. —Reuters