The Forum for Partners in Iran's Marketplace

August 2011, No. 61

Exclusive 16th International Oil Show

7bn Euro Oil Partnership

Proposals have been given by the foreign partner for participation in construction of seven new oil and gas condensate refineries in the country.

Deputy Oil Minister Alireza Zeighami referring to several rounds of oil talks between Iran and foreign countries said during the trip of an Iranian delegation to many countries were held with a number of foreign companies for their participation in refinery projects.

Zeighami, who is also Managing Director of National Refining and Distribution of Oil Products, was speaking on the sidelines of the 16th International Oil, Gas and Petrochemicals in Tehran.

Stressing that the talks were aimed at maintaining the required finance for some oil refinery projects of the country, the official said at present general authorizations have been obtained for financing three new refinery projects by the foreign partners.

He said currently engineering studies on the project for development and optimization of oil refineries in Abadan and Isfahan have been concluded, adding that if agreement is reached there is the possibility that these two oil projects would be financed by the foreign partners as well.

Putting the investment required for completion of Abadan and Isfahan oil refineries at about 7 to 7.5 billion dollars, he said furthermore there is the possibility that parts of the fund for the construction of Anahita oil refinery in Kermanshah would be financed by foreign partners.

The objective behind development and optimization of Isfahan and Abadan oil refineries is to boost daily production to 13 million liters of gasoline, about 17 million liters of gasoil, over 4.5 million liters of kerosene and 3.6 million liters of Liquid Petroleum Gas (LPG).

Currently 20% of the construction operations are underway for development of Isfahan refinery with the completion of which in addition to reducing production of fuel oil, the amount of refinery feed would drop by about 30 thousand barrels per day.

The deputy oil minister said that negotiations with foreign companies for participation in oil refinery projects and development of Isfahan and Abadan refineries is in the agenda, adding that meanwhile proposals have been given by the foreign partner for participation in construction of seven new oil and gas condensate refineries in the country.

Earlier, Oil Ministry officials had announced 7.5 billion euro investment by the foreigners for the construction of new oil refineries in Iran.

At present, executive operations are underway for optimization, development and gasoline projects at oil refineries available in the country by over $13bn.

It is predicted that with the operation of all these projects totally near 40 million liters would be added to the capacity of gasoline production and 18 million liters to the production of gasoil in the country.


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  August 2011
No. 61