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Iran issues permit for Mazandaran oil refinery

Iran Materials 21 December 2011 13:58 (UTC +04:00)

Azerbaijan, Baku, Dec. 20/ Trend M. Moezzi

Iran's oil minister said a permit has been issued for a refinery in the northern province of Mazandaran and any private company ready to work on the project will be supported by the government, Isna News reported.

Petroleum minister Rostam Qasemi said monies from the National Development Fund can be used to help build the Mazandaran refinery. Earlier, the oil ministry had announced choosing the Tabarestan Oil Refining Company for the project and the Khatam al-Anbia Construction Headquarters had signalled its readiness to invest.

Based on Article 84 of the fifth, five-year Socio Economic Development Plan (2011-2015), the National Development Fund was established to transform oil and gas revenues into productive investments for future generations. Accordingly, 20 per cent of Iran's oil income is to be transferred to the National Development Fund and also at least 20 per cent of the NDF's sum should be allocated to promoting foreign investment.

There are currently no oil refineries in Iran's Northern provinces and getting fuel to the

region is costly. Building the Mazandaran refinery would supply oil to the region and make it possible to export oil to neighbouring countries like Afghanistan.

In late summer of this year, Mohsen Zaeri, a governor in the region, announced that a foreign company would start working on the first phases of the project with a budget of $3 billion and work was to begin at start of next year (Iran's solar year ends in March).

Funding for the project will come from financing and foreign investments.

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