Iran signs deal with Japan to decrease its fuel oil production

Business Materials 11 May 2016 12:53

Baku, Azerbaijan, May 11

By Fatih Karimov - Trend:

Iran has signed a deal with Japan to decrease production of fuel oil in one of its refineries, Saeed Mahjoubi, an official with the National Iranian Oil Refining and Distribution Company (NIORDC), said, SHANA news agency reported May 11.

Iran plans to decrease the share of fuel oil production from the total refining capacity which is about 27 percent at the moment.

Mahjoubi, who is the director for production coordination and supervision at the NIORDC, said that Japanese will do preliminary studies of a project to reduce fuel oil production in Tehran Refinery under the signed contract.

He did not unveil more details about the Japanese company and the contract details, but did say that the Japanese will also work on energy consumption decrease in Abadan refinery, Mahjoubi added.

Iran's Deputy Oil Minister Abbas Kazemi said Dec. 2015 that production of fuel oil in Iran will decrease to 10 percent of the total refining capacity by 2025.

It is expected that in the next four years, the country's demand for fuel oil will be restricted to only two months in a year, according to Kazemi who also serves as the managing director of the NIORDC.

Iran is the world's third major fuel oil producer, which indicates low performance of the country's refineries.