80% of Refining Operations Privatized | ||
80% of Refining Operations Privatized Over 80 percent of refining operations have been ceded to the private sector and the remaining is handled by public sector, said deputy oil minister. Speaking at a press conference in Tehran, Alireza Zeighami pointed out that seven refineries have so far been privatized. National Iranian Oil Refining & Distribution Company (NIORDC) has a good collaboration with the board of directors and privatized refineries, he said. Isfahan Oil Refining Company and refineries of Bandar Abbas, Tabriz, Shahid Tondgooyan, Shiraz, Kermanshah, and Lavan have so far been ceded to the private sector, he said, adding Abadan Oil Refining Company and Imam Khomeini Shazand Oil Refinery, Markazi province are on the privatization list. In addition, NIORDC, National Iranian Oil Pipeline and Telecommunication Company, National Iranian Oil Construction and Engineering Company, and Refining Industries Development Company are also on the list, he continued. He said projects including expanding Imam Khomeini Shazand and Lavan refineries, increasing the capacity and improving the quality of Tehran’s Shahid Tondgooyan, Tabriz, Isfahan, and Bandar Abbas refineries, and the third phase of Abadan Refinery will be completed by the end of tenure of current government under ‘Mehr Mandegar’ Plan (which plans to complete semi-finished projects). Also pointing to financing process of Setareh Khalij-e Fars and Anahita refineries (Kermanshah province), he said due to the new parliament’s (Majlis) approval, it is not possible to secure finance for the implementation of the abovementioned refineries via National Development Fund. “Therefore, we should find other resources for financing these projects”, he said, citing the private sector and foreign investment as examples. He continued that the government holds 10 percent of the shares of Setareh Khalij-e Fars Refinery, while the remaining shares are owned by the private sector. At present, private sector is the shareholder in ensuring Abadan Refinery capacity, expanding Isfahan Refinery, and constructing Anahita and Setareh Khalij-e Fars refineries, he mentioned. “We seek to secure a portion of the financial resources required for these projects via foreign investment.” He announced that several refining projects pertaining to the expansion of refineries and laying pipelines will be implemented during the current Iranian year (started March 20). Asked about the construction of Shiraz Petrofield Refinery, Fars province as a model of an entirely domestically-built refinery, he said given the contents of the Fifth Five-Year Economic Development Plan (2010-15), NIORDC’s managing director can possess 20 percent of shares of this refinery by the end of the plan. If the shareholders do not take measures to expand the refinery, he concluded, NIORDC may invest in this project and own 50 percent of the stocks. | ||
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