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Profile: National Iranian Oil Company (NIOC)
National Iranian Oil Company (NIOC) was a participant or observer in the following events:
Russia is negotiating a long-term oil swap contract with the National Iranian Oil Company (NIOC). As part of the swap deal, Russia would send crude oil to Iran’s northern refineries for domestic consumption via a Chinese-built pipeline in exchange for an equal amount of Iranian oil being sent to Russia’s buyers at Iran’s Gulf oil terminals. The arrangement would make Russian oil available to non-European buyers at a competitive price by decreasing the cost of delivery. [Asia Times, 2/11/2003] United Press International will note in 2005 that the swap agreements are “a direct challenge to the Baku-Tbilisi-Ceyhan (BTC) Pipeline Project.” [United Press International, 6/29/2005]
India announces that it has agreed to a $40 billion deal with Iran. Under the terms of the agreement, the National Iranian Oil Company (NIOC) will sell 5 million tons of liquefied natural gas (LNG) annually to India over a 25-year period with the possibility of increasing the quantity to 7.5 million tons. India’s price will be computed at 0.065 of Brent crude average plus $1.2 with an upper ceiling of $31 per barrel. As part of the deal, India’s ONGC Videsh Ltd (OVL) will participate in the development of Yadavaran, Iran’s largest oil field. India’s share in the oil field will be 20 percent, which translates into roughly 60,000 barrels per day of oil. Iran has retained a 30 percent stake while the Chinese state oil company Sinopec secured a 50 percent share in an agreement signed at the end of October (see October 29, 2004). India’s deal with Iran will also provide India with 100 percent of the rights in the 300,000-barrel-per-day Jufeir oilfield. [Asia Times, 1/11/2005; World Peace Herald, 1/17/2005] The agreement could give new impetus to the long proposed Iran-Pakistan-India gas pipeline project (see 1993). The Tehran Times, which is known to represent the views of the Iranian government, comments, “The Iran-India agreement on LNG exports will pave the way for the implementation of the project to pipe Iranian gas to India via Pakistan and the dream of the peace pipeline could become a reality in the near future.” [Asia Times, 1/11/2005]
Iranian Oil Minister Bijan Namdar Zanganeh signs a memorandum of understanding with his Indonesian counterpart Purnomo Yusgiantoro that Iran will build a $3 billion refinery in Indonesia. As part of the deal, Indonesia will receive 300,000 barrels per day of heavy crude and Tehran will get a 30 percent stake in PT Pertamina, Indonesia’s state oil company. National Iranian Oil Company and Pertamina will lead the four-year project, which Iran hopes will provide security for Iran’s market supply. [Islamic Republic News Agency, 3/16/2005; Bloomberg, 3/18/2005]
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