China National Petroleum Corporation (CNPC) is considering exporting a portion of crude from the North Buzachi field in Kazakhstan through Iran under a swap agreement. According to the deal, CNPC would deliver the Buzachi crude to the Iranian port of Neka on the Caspian in return for an equivalent amount of Iranian crude, which would be delivered at Kharg Island. It appears that CNPC wants to secure multiple routes for its crude, with exports also being shipped from Makhachkala, Novorossiisk and Azerbaijan. However, if a deal with the Iranians is sealed, CNPC may stop shipments through Azerbaijan altogether, Azer-Press reported. Earlier in the month, ChevronTexaco and Nimir agreed to sell CNPC their respective stakes of 65% and 35% in the North Buzachi field for roughly US$210m. Iran has been anticipating an increase in Caspian crude swaps and has embarked on a programme to upgrade its refineries to handle greater volumes. In addition, a new 150,000-bpd pipeline running from Neka to Tehran is expected to be opened in September. Iran is currently swapping around 50,000 bpd of Caspian crude, up from around 30,000 bpd earlier in the year. CNPC is aiming to have several options for exporting its heavy, sulphurous Buzachi crude. By swapping with Iran, CNPC will be cutting out thousands of miles of transport costs. If the swap arrangement is successful, it will cast into doubt plans for building a massive Kazakh-Chinese pipeline. (WMRCL)