Monday 25 August 2008

First Azeri Oil Cargo

Iranian Oil Terminals Company yesterday received Republic of Azerbaijan's first cargo of crude oil to be transited via Iran's route.

   

According to Shana News Agency, Baku exported its crude oil via Iran after the conflict disrupted its routes through Turkey and Georgia.

Iran's unique strategic situation, the facilities to access free waters, and its remarkable railway system and oil terminals are among the several reasons why Azerbaijan Republic has preferred Iran as a proper route to export its oil to world's markets.

Iran can currently handle 200,000 bpd of Caspian and Central Asian crude oil and with minimal cost the country can raise that figure to 500,000 by putting the imported oil through its northern oil refineries and exporting an equivalent amount from its southern ports.

On this basis, the military conflict between Russia and Georgia has also led to the closure of the Baku-Supsa oil pipeline that normally transports 90,000 bpd of crude from the Azeri capital to the Georgian port in the Black Sea.





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