Iranian petrochemical units, refineries owe $2.85B to Oil Ministry

Business Materials 1 December 2014 14:37 (UTC +04:00)

Baku, Azerbaijan, Dec.1

By Fatih Karimov - Trend:

Iranian petrochemical units and refineries owe $2.85 billion to the country's Oil Ministry.

Iranian MP Jafar Qaderi said petrochemical units and refineries owe $2.85 billion to the Oil Ministry for the feedstock, Iran's Fars news agency reported on Dec. 1.

Feedstocks are substances used especially as fuels or as raw materials supplied to processing plant for chemical synthesis. Some hydrocarbons such as ethylene, butadiene, propane and butane are classified in this category.

The administration is working on a plan, according to which Oil Ministry will supply petrochemical units and refineries with feedstock through opening letters of credit (LCs), Qaderi said.

Currently, there is no specific mechanism in Oil Ministry to deal with petrochemical units and refineries to settle their debts, he noted.

US dollar exchange rate is currently about 35,000 rials in Iran's free market.