Iran eyes stakes in foreign refineries
By Aynur Karimova
Energy-rich Iran, which is free of international sanctions, is returning to the world energy market with big strides.
The Islamic Republic, the fourth country with largest proven oil reserves of about 158 billion barrels, is now in talks with Brazil, Malaysia, South Africa, Sierra Leone, Indonesia and India to purchase shares in oil refineries of these countries.
“Iran already holds a 30-percent share in construction of a refinery with a capacity of 250,000 barrels per day in Malaysia, and we are talking to buy a 40-percent share in another refinery in Indonesia with a capacity of 300,000 barrels per day,” Hamid Sharif-Razi, the Managing Director at the National Iranian Oil Engineering and Construction Company, told local media.
He explained that Iran wants to purchase shares in foreign refineries to guaranty its oil exports.
Brazil showed willingness for Iran’s participation in building a refinery, as well as purchasing shares of a refinery in that country, he said but did not reveal the details.
Investing in overseas refineries is one of the most common ways used by oil producing countries to boost crude exports.
Currently, some littoral states of the Persian Gulf, which are among world’s major oil exporters, own a remarkable number of oil refineries in American, European and Asian countries, which has greatly increased their clout in global energy markets.
Therefore, the Iranian Oil Ministry is planning to invest in refineries in countries whose crude oil is being supplied by Iran.
“The safest way to increase the exports is investment in refineries abroad. On this basis, the petroleum ministry wants to invest in refineries abroad, whose crude oil will be met by Iran,” Abbas Kazemi, the head of the state-run National Iranian Oil Refining and Distribution Co., told local media on January 9.
In 2014, the Islamic Republic announced that it is preparing to construct five refineries in Indonesia with an aim to diversify own oil exports.
Local media reported earlier that Iran would build an oil refinery in Indonesia with a daily production capacity of 150,000 barrels of crude oil, in addition to five smaller refineries with daily production capacities of 30,000-50,000 barrels of gas condensate each.
In January, Spanish Foreign Ministry reported that Iran and Spain are negotiating a plan to construct a joint oil refinery at the Gibraltar Strait. The sides have agreed that this refinery will be finally owned by Iran.
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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova
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