Kazakhstan builds oil ties with Iran

The terminals, to be built by the Kazmunaigaz and Kaznafta oil companies, will handle 1.5 million tonnes of oil annually on "profitable terms for Kazakhstan," a written statement from Kazakh Prime Minister Danial Akhmetov said.

Kazakhstan plans to ship oil from its vast Caspian Shelf reserves to supply domestic demand in densely populated northern Iran.

Iran will pay for the oil with proceeds from global sales of corresponding amounts from its own fields, which are mostly located in the south, thus saving on transport costs.

Though the system has been criticized for lacking transparency, its volumes have nonetheless steadily increased.