Tehran, Tokyo to ink new refinery deals

TEHRAN, Jan. 09 (MNA) – Deputy oil minister said two contracts for optimization and improvement of manufacturing processes in Bandar Abbas and Tehran oil refineries will be soon inked with two credible Japanese refineries.

Managing Director of National Iranian Oil Refining and Distribution Company (NIORDC) Abbas Kazemi expounded on the most important investment opportunities in Iran’s petroleum refinery industry during the post-JCPOA era saying “implementation of developmental and optimization projects as well as reduction of fuel oil mark the main objectives in expansion of the Iranian industry.”

The official, while emphasizing that the share of fuel oil and the country’s basket of petroleum products needs to be lowered to about 10 per cent asserting “accordingly, in order to reduce fuel oil output in refineries, several talks have been conducted with international companies especially in South Korean and Japan.”

Recalling the signing of a contract with Daelim of South Korea for optimization and improvement of production processes in Esfahan Oil Refinery Company (EORC), Kazemi emphasized that “upon implementation of the Joint Comprehensive Plan of Action (JCPOA), foreign investors, South Korea and Japan, voiced extreme eagerness to enhance old Iranian refinery complexes, which is a necessity indeed.”

“Old refinery yield large quantities of fuel oil whose worth is plunging in global markets dropping below crude oil in popularity.”

NIORDC head stressed that final talks were underway in Bandar Abbas and Tehran refineries with Japan Cooperation Center, Petroleum (JCCP) and Japan’s JGC Corporation reiterating that “all old refineries require a total of approximately 14 billion dollars for them to produce Euro-4 products and decrease fuel oil out pot to less than 10 per cent.”

HA/3871662

News Code 122591

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