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Gasoline
Stores Adequate for Six Months
 |
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To
supply needed gasoline over the next 15 years, we should invest about
15-18 billion dollars in the sector. If that investment is realized, we
would be producing 140 million liters gasoline per day, while we are
currently only producing 42 million liters gasoline per day. |
"We have no problems for gasoline
supply for six months to come and our current stores will suffice for that
period.”
Mohammad Reza
Nematzadeh, managing director of the National Iranian Oil Refining and
Distribution Company, noted that if gasoline rationing is postponed, the
government will have to import fuel.
Asked about contradictory news on drawing up
a new bill for importing gasoline, he stated, “It is not our duty to draw up
bills and Management and Plan Organization is to make decisions in this
regard. We know nothing about it. All we know is that authorities are mulling
such bill.”
Deputy minister
of petroleum further noted that the Budget Act for the current Iranian
calendar year (started March 21, 2006) has predicted fuel rationing and the
government is permitted to do that.
“But only the
government has the authority to decide as to the time when rationing will be
enforced,” he added.
Nematzadeh
stated that 3.5 billion dollars is needed to import gasoline over the second
half of the current Iranian year, adding, “To supply needed gasoline over the
next 15 years, we should invest about 15-18 billion dollars in the sector. If
that investment is realized, we would be producing 140 million liters gasoline
per day, while we are currently only producing 42 million liters gasoline per
day.”
Iran
to Invest in Venezuela: “We are conducting preliminary studies on
building a refinery in Venezuela with refining capacity of 300,000 barrels per
day, but no final decision has thus far been made in this regard.”
Deputy oil
minister and managing director of the National Iranian Oil Refining and
Distribution Company, Mohammad Reza Nematzadeh, also stated that simultaneous
with a visit to Tehran by Chinese president, the two sides reached agreements
for building a refinery in China and feasibility studies have been carried out
in this regard.
A reporter asked
why instead of investing inside the country and building refineries here, the
investment is to be made outside Iran, to whom Nematzadeh answered, “We are
also investing inside the country. However, the National Iranian Oil Refining
and Distribution Company is not a contractor and is only an investor and we
will attract needed capital through finance.”
85%
Foreign Finance: Deputy oil minister, who was speaking to reporters
on the sidelines of signing a contract with Chinese companies for development
of Arak refinery, also stated that the contract was the biggest engineering
contract to be signed between the two countries.
“Some 66 percent
of the contract’s funds will be supplied by the Iranian contractor and the
rest will be supplied by Chinese company and other members of the consortium,”
he added.
The official
noted that foreign finance will account for 85 percent of the project’s funds
while domestic finance will account for the remaining 15 percent.
“With regard to
domestic finance, we will fund the project in cash and in rials,” he said.
Nematzadeh
further stated that the project will enable Iran to produce 11 million liters
gasoline per day, which is about one-thirds of current gasoline imports.
He added that
the first phase of the plan aims to increase production capacity of the
refinery up to 250,000 barrels of various oil products per day.
“During that
phase, the refinery will be producing about 6 million liters gasoline per day.
However, the second phase, which will be implemented after 45 months, will see
gasoline production by Arak refinery to reach 11 million liters per day,” he
said.
The managing
director of National Iranian Oil Refining and Distribution Company noted that,
thus far, 1.75 billion euros of the contract’s total worth has been finalized
and about 350 million euros will be finalized after receiving price quotes
from manufacturers of needed equipment and parts.
Iran
may Purchase Venezuelan Gasoline: While National Iranian Oil
Refining and Distribution Company officials were signing Arak refinery’s
development plan contract with China’s Sinopec, Seyed Kazem Vaziri Hamaneh,
the Iranian minister of petroleum, announced that a general agreement has been
signed with Venezuelan energy minister and also, four other agreements have
been signed among various subsidiary companies of the two countries’ oil
ministries.
Speaking to
reporters after a meeting with his Venezuelan counterpart, Ramirez, Hamaneh
noted that a joint energy committee will be established at the level of both
countries’ oil ministers to pave the way for further agreements between Tehran
and Caracas.
He added, “We
have conducted negotiations with regard to exploration and production and
presence of Iran’s Petropars Company at an oil field in Venezuela as well as a
gas field whose exploration operations will start soon.”
Hamaneh noted
that the two sides have also agreed on building a refinery in Venezuela which
will be fed through productions of Petropars Company from the said Venezuelan
field.
The two sides
have also agreed to share the project with Indonesia.
Vaziri Hamaneh
further noted that the two countries have discussed possible purchase of
gasoline by Iran from Venezuela.
“If
specifications of Venezuelan gasoline are confirmed by refining experts, we
will hopefully sign a contract for importing gasoline from Venezuela in line
with prior ratifications of the Islamic Consultative Assembly,” he said.
The minister
added that the value of contract signed with Petropars Company for development
of two oil and gas fields in Venezuela amounts to about 4 billion dollars.
“This will be
the biggest instance of investment by Petropars outside the country. The
investment will be made through receiving funds from international banks,” he
concluded. |
