Iran is facing logistical challenges in exporting its crude oil through the Caspian Sea. Despite rumors about the possibility of using new routes, public evidence does not indicate Iran's ability to export significant amounts of oil.
Iran's Oil Production and Transport
Iran's oil is mainly produced in Khuzestan province and also in the oil fields of the Persian Gulf. Domestic crude oil is mostly refined in the coastal areas of the Persian Gulf, as the pipelines heading north must cross the Zagros Mountains.
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However, the Ahvaz-Tehran pipeline can transfer 300,000 barrels per day of crude oil from the Dezful oil field to the refineries in Tehran. This pipeline is supplemented by a smaller pipeline with a capacity of 100,000 barrels per day from Ikhtoot to Tehran and then to Tabriz, which is fed by crude oil purchased from Russia.
Export Challenges to the North
Currently, there is no way to transfer Iranian crude oil in bulk from the main production fields in the southwest to the north and the Caspian Sea. Converting the Tehran-Ikhtoot pipeline into an export pipeline, along with developing the Ikhtoot terminal to accommodate larger volumes, could be a temporary solution.
Iran also needs a fleet of oil tankers to transport crude oil to the north. Although Russia has a fleet of shallow-draft tankers that can operate in the Caspian Sea, it is also facing challenges in its own oil exports. Therefore, even Iranian ingenuity cannot quickly provide the necessary technical or infrastructural solutions in this regard.
Currently, there is no possibility of exporting Iranian oil through pipelines to Baku, and strained diplomatic relations with Azerbaijan have complicated this matter. While Baku receives Kazakh oil from Aktau, there are no signs of Iranian oil imports to this region.
Iran is trying to resume 90 percent of its oil exports that were going to China. However, sanctions and logistical barriers have turned this goal into a major challenge. It seems that Iran is looking to increase exports of petroleum products such as diesel and gasoline, which are technically easier to export than crude oil.
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