EMEA News
Asia Invests in Multi-Billion Dollar Iranian Refineries Overhaul
A refinery in Isfahan, Iran is being renovated thanks to a deal signed between the National Iranian Oil Refining and Distribution Company (NIORDC) and unnamed South Korean companies, according to Iranian media reports.
Abbas Kazemi, managing director for NIORDC, says the Isfahan refinery is already 20-30 percent upgraded and will produce greater volumes of Euro-IV gasoline and gas oil upon completion.
This output will presumably lessen Iran's dependence on imports, which now stands at 8 million litres of gasoline daily against daily consumption of 70 million litres.
Kazemi added that another major overhaul, to a refinery in Abandan, is currently being negotiated with Chinese lenders; it will cost about $3-billion and is aimed at increasing the quality of gasoline and gas oil.
Asia isn't the only player in Iran's post-sanctions bid to revitalize its infrastructure and output capabilities: Bijan Zangeneh, Minister of Petroleum to the Islamic Republic, this week announced that France's oil giant Total has signed a non-disclosure agreement to develop the South Azadegan oil field shared by Iran and Iraq, according to a separate report by Press TV.
If the project follows through, it would result in access to a reserve of about 33.2 billion barrels.
About the only nation not making deals with Iran is the one that brokered the deal to have the sanctions against it lifted: the U.S. has been sidelined while European oil companies are free to enter Iran, due to the trade embargo that prevents transactions in American dollars remaining intact.
