EMEA News
Iran Looks to Reduce Fuel Oil Output with Refinery Upgrades
Abbas Kazemi, Managing Director of the National Iranian Oil Refining and Distribution Company (NIORDC) says that Iran is looking to reduce it's fuel oil output, and is in talks with foreign companies to upgrade the country's refineries following years of sanctions, local media reports.
Nine refineries in Iran were said to be currently processing 1.8 million barrels of crude oil per day, but the Ministry of Petroleum was reported to have said that only one is operating within an acceptable profit margin.
The rest, which Kazemi says have been producing too much fuel oil, all require major upgrades in order to produce higher value products.
"As per the Vision Plan, fuel oil production has to reach 10 percent. This rate is currently at 28 percent," said Kazemi.
The Isfahan and Bandar Abbas refineries are each said to be slated for $1.2 billion in upgrades and enhancements, with companies from Japan and Korea said to have been involved in talks over possible investment.
In November, Ship & bunker reported that the Arab Petroleum Investments Corporation (APICORP) said that it will take "years rather than months" before Iran is able to achieve its full oil export capacity.
