Lukoil seeking to build retail energy facilities in Iran

Business Materials 5 October 2016 15:57 (UTC +04:00)

Tehran, Iran, Oct. 5

By Mehdi Sepahvand – Trend:

Iran has started a round of talks with Russia’s major oil company Lukoil, which is interested in building refineries, oil storage and filling stations in Iran.

Bijan Haj Mohammad Reza, chairman of Iran’s Fuel Station Owners Association, announced the news, adding the Russian company is seeking the distribution of gasoline in Iran under the Lukoil brand, Mehr news agency reported Oct. 5.

Lukoil is negotiating the launch of 20 to 22 filling stations in Iran, Reza mentioned.

Iranian media last year reported that Shell and Total received licenses to establish 100 filling stations each across Iran, thus becoming the first foreign companies ever to win access to Iran’s retail energy market. The claims were not ratified later.

The National Oil Products Distribution Company’s CEO Nasser Sajjadi said in August that Iran will start to distribute liquid fuels and compressed natural gas (CNG) under private brands.

“Three brands have received certificates already and the number will reach 10 by late September,” he said then.

The national company has been the sole distributor so far, but this year the government is implementing plans to extend the job into the private sector.

The Iranian Oil Ministry has said the privatization is intended to improve the quality of services, safety and accessibility.