Iran eyes refineries in other countries as alternative to falling oil sales

Oil&Gas Materials 31 March 2020 18:08 (UTC +04:00)
Iran eyes refineries in other countries as alternative to falling oil sales

TEHRAN, Iran,March.31


Iran is looking for new ways to utilize its oil and petrochemical industry, while the crude oil sale has dropped intensely, member of Iranian Oil, Gas and Petrochemical Products Exporters Union Hassan Khosrojerdi told Trend.

One of the ways out for Iran, according to Khosrojerdi, is to establish direct links with refineries in other countries.

"Indonesia for example has big population and imports 900,000 barrels of oil products per day. if Iran becomes partner with the refineries in this country, progress will follow," he said.

"It was expected that Iran signs agreement with Indonesia over this subject, but at the time the issue wasn't taken seriously," he said.

"Iran can sign contracts during the sanctions, and can have minor benefits from contracts that would go beyond the sanctions. The approach will be in favor of both countries," he said.

"It's possible that ships can transport Iranian products under another country's flag, since not all countries are avid followers of the US," he added.

"Iran can export its oil products to countries that are weak regarding refining oil and oil products," he said.

As an example, Khosrojerdi said there are several refineries in African countries that are old, but with little cost they could be reconstructed and become beneficial.

"There are refineries that are not working in Mozambique, Nigeria, Tanzania and Zimbabwe that only require little overhaul. Also, in Ivory Coast there is a refinery with production capacity of 100,000 barrels while it only produces 25,000 barrels, so investing in any of these refineries would have profit for Iran and can be an alternative to oil sales," he said.