Iran plans to build small scale oil refineries costing $30-40 million

Oil&Gas Materials 20 May 2013 13:09 (UTC +04:00)

Azerbaijan, Baku, May.20/ Trend F.Karimov/

Iran plans to build small scale oil refineries which will cost $30-40 million, the Fars News Agency reported.

The country has acquired the technology for balding such refineries which can be carried to the site in the back of trucks.

According to Farhad Ahmadi, managing director of the National Iranian Oil Engineering and Construction Company, such facilities will have the capacity of refining 5000-10000 barrels of oil per day.

In March, Head of Iran's Oil Products Exporters Union says the Islamic Republic is planning to build its first small oil refinery in the north-eastern province of Golestan.

"For the time being, we are carrying out studies to build this refinery and preliminary studies suggest we will be able to build the first small refinery with a capacity of 10,000 barrels (of crude per day)," Hassan Khosrojerdi said.

Khosrojerdi added that the facility which could be enhanced to a capacity of 20,000 barrels a day, would make a remarkable contribution to Iranian exports of oil products and help the country reduce its dependence on crude sales.

Experts have suggested Golestan's Khajeh-Nafas Port for the location of the refinery which will be fed by crude from the Commonwealth of Independent States (CIS), he added.

The official stated that the use of CIS oil is aimed at reviving crude swap between Iran and Central Asia.

Earlier this month, Iran said it was agreed with six African countries to establish oil refineries in those countries.