...

Iran plans to purchase refineries abroad

Business Materials 10 November 2015 13:04 (UTC +04:00)

Baku, Azerbaijan, Nov. 10

By Khalid Kazimov- Trend:

Iran is planning to buy oil refinery plants abroad after the removal of sanctions imposed by Western countries.

Purchasing refineries, petrochemical complexes, and gasoline stations abroad is a reliable solution for reducing international pressure on Iran's oil sector.

"The oil ministry is planning to invest in refineries abroad, where Iran will serve their demand for crude oil," IRNA news agency quoted the chief executive director of the National Iranian Oil Refining and Distribution company, Abbas Kazemi, as saying on Nov. 10.

He added that Iran needed to get its oil sale guaranteed for the long term, which would be realized by investing in international refineries.

Kazemi further rejected claims that purchasing these refineries was not beneficial, pointing out that they would increase the sale of Iran's crude oil.

Most of the Gulf States, who are among the main oil exporters, have a considerable number of refineries in the EU, the United States, and Asia, while Iran owns only part of the Modares refinery's share in India.

Iran has said it is interested in rebuilding economic relations with other countries and is encouraging foreign investment in its industries and infrastructure.

Lifting the sanctions against Iran could increase the supply of Iranian oil to the world energy market by half a million barrels per day next year. This surplus will stabilize the world's oil prices at the current low level. The International Monetary Fund believes that Iran will increase its oil production (including condensate) by 20 percent to 3.7 million barrels per day in 2016.

Tehran is now actively promoting its new oil contracts, announcing the openness of the Iranian energy market to foreign investment.

Iran and the P5+1 group of countries agreed on July 14 to implement the Joint Comprehensive Plan of Action (JCPOA) to curb Tehran's nuclear program in exchange for the lifting of most international sanctions.

According to the JCPOA, Tehran is committed to reducing the number of centrifuges it holds.

Iran's oil refining capacity stands at 1.8 billion barrels per day.

Latest

Latest