Iran’s petchem industry offers opportunities for privatization

Oil&Gas Materials 15 December 2015 11:34 (UTC +04:00)

Tehran, Iran, December 15

By Mehdi Sepahvand - Trend:

There are good opportunities for privatization in Iran's petrochemical industry, especially in the areas of operation and maintenance, Majid Habibi, operation and maintenance projects director at Oil Industries Commissioning and Operation Co. (OICO), said.

There are also opportunities in the oil and gas sectors, but in the petrochemical industries privatization projects have been more successful so far, he told Trend on the sidelines of the Iran Petrochemical Forum in Tehran.

Habibi added his company is involved both in operating oil, gas, and petrochemical projects and promoting privatization.

Speaking about Iran's newly unveiled contracts called IPC (Iran Petroleum Contract) and how they will affect the business, he said that foreign companies which used to act under the GC and APC contracts will now have the opportunity to expand their activities under the IPC.

During last month Tehran hosted 137 companies from 45 countries for a two-day conference, during which legal generalities of Iran's new model of oil and gas contract (Iran Petroleum Contract, or IPC) were introduced. More details about the contracts will be unveiled at a conference likely to be held in London in February 2016.

There are 67 unfinished petrochemical projects in Iran, with advancements between 10 and 90 percent.

Iran hopes to realize an output of 120 million metric tons a year if these projects come on stream.

The country also has plans for 36 new projects that need a total estimated fund of $41 billion. These could increase the country's petrochemical output by 60 million metric tons a year.

The 12th Iran Petrochemical Forum which brought the biggest Petrochemical companies and investors together, was the most significant of its kind held in the Islamic Republic. As the Iranian government prepares for the implementation of Joint Comprehensive Plan of Action and the lifting of Western sanctions, officials expect a boom in the Petrochemical sector.