The head of LUKOIL announced plans to supply Iranian oil to its refineries

President of oil company LUKOIL Vagit Alekperov announced plans to sign a long-term contract for the supply of Iranian oil to the refineries of the company, reports TASS.

“In the near future we will develop the formula for the swap transactions and in General a long-term contract for the supply of oil to our plants”, he said after a meeting with the Minister of oil of Iran Bizhan Namdar Zanganeh.

Alekperov said it was difficult to clarify the possible volumes of deliveries of oil on factories of LUKOIL, due to the fact that the needs of Iran is still unknown. However, noted that before the introduction of sanctions against Iran the company has supplied up to two million tons of oil per year.

“LUKOIL is interested in the trading operations [in Iran]. Because we have historically been the most active operator for trading operations in the Caspian sea. We have supplied petrol and kerosene to Iran. Plus we will be the large trading operator in the territory of the Persian Gulf. The Minister expressed support for our negotiation process,” said Alekperov.

LUKOIL became the first Russian company with which the government of Iran signed a contract after the lifting of sanctions in January 2016. The agreement relating to the conduct of exploration in the South-West of Iran. In 2003, LUKOIL sign contract on oil exploration in the region, acting jointly with the Norwegian company Statoil. Then we opened two oil fields, but the studies were terminated after the imposition of international sanctions against Iran.