According to Fars, sources have revealed Iran is close to finalising negotiations with several European states to construct refineries and sell its oil products in the green continent.
The source told FNA, "At present, some of these negotiations have been finalised and a number of European parties have taken up to start building these refinery units with Iran's partnership," "Based on the decisions, Iran's oil will be sent to the refineries and will be sold in host countries after being refined," he added.
Iranian officials have said that building refineries overseas would require long term contracts, which would guarantee steady supplies and provide a buffer against unexpected market turns and Western sanctions.
Many European refineries were receiving Iran’s 2.3 million bpd of crude oil exports before sanctions on the Islamic Republic, in 2012, brought them to a stop.
In October, Director of International Affairs at the National Iranian Oil Company (NIOC) Mohsen Qamsari announced that Iran was conducting negotiations with the European and Asian refineries. "Crude marketing through investment in the refineries of the target countries for export of Iran's oil is a longterm program; our officials both in Europe and Asia are negotiating to purchase the share of some oil refineries," Qamsari told FNA.
According to Fars, Iran had planned to build nine oil refineries in Europe and Asia with the input of private partners before sanctions placed a metaphorical roadblock in their way. European oil buyers have held talks with NIOC officials in Europe and Tehran over the past year in hope and anticipation of the sanctions being lifted.
Iran is ready to return to the pre-sanction export levels, with oil officials saying Tehran would be able to increase its output by 500 000 bpd a day after sanctions are lifted and a further 500 000 bpd within six months of recovery.
In May, Deputy Oil Minister Abbas Kazzemi announced that Brazilian and Indian energy officials had also asked for Iran's assistance to construct oil refineries.
"Brazil and India have negotiated with Iran on the construction of refineries," Kazzemi, who is also the Managing-Director of the National Iranian Oil Refining and Distribution Company (NIORDC), told reporters on the sidelines of the 20th International Oil and Gas Exhibition in Tehran. Kazzemi said Brazil wanted Iran's help with building a 300 000 bpd refinery while India had wanted to construct a refinery with the capacity of 400 000 bpd.
Edited from various sources by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/refining/07122015/iran-plans-eu-refineries-1901/