Iran to stop buying foreign licenses for oil refining projects

Iran Materials 16 December 2011 11:46 (UTC +04:00)

Azerbaijan, Baku, Dec. 16 / Trend F.Milad/

Iranian Oil Minister Rostam Qasemi has issued an order instructing the National Iranian Oil Production and Distribution Company (NIOPDC) to stop buying foreign licenses for domestic oil refineries.

The decision comes after some foreign companies involved in Iranian oil projects failed to meet their obligations and followed the international sanctions on Iran's oil industry, according to the Pana news agency.

The NIOPDC is currently using domestic expertise and licenses for implementing seven oil refining and two gasoline producing projects, the report added.

However, based on a report by Iran's ministry of industries and mines, domestic refineries produce 42,952 tons of petrochemicals, of which 15,033 tons are produced under the license of German companies. In fact, Germany holds a 35 percent share in Iran's petrochemical production. UK, France and the Netherlands rank the next with 18 percent share, 12 percent share and 11 percent share, respectively.

With an eye to these statistics, Iran is highly dependent on foreign expertise in the petrochemical sector. Over half of the country's petrochemical output will be dependent on the above four mentioned countries by 2015, the report says. Of course, the statistics do not include those plans for which licensors have not yet been introduced.

Considering the advancement of such foreign countries in the technological fields, the remaining 22 percent of Iran's petrochemical output should be seemingly secured under the license of such countries in the future.