Iran to build five new oil refineries across Asia

Iran to build five new oil refineries across Asia - UPDATE
11/06/2007 18:25:00
KUALA LUMPUR (XFN-ASIA) - Iran has announced it will help build five new
refineries across Asia including China with a total capacity of 1.1 mln barrels
per day in a bid to bolster ties in the region.
"Iran has finalised feasibility studies for five refining projects in five
Asian countries with a total capacity of 1.1 mln barrels per day," Seyed Kazam
Vaziri Hamaneh, Iran's petroleum minister said.
Seyed Kazam said the projects are part of Iran's attempt to boost cooperation
with Asian countries, adding that his nation will provide the crude oil.
"Those are some of the cooperation opportunities which I hope will be
supported by Asian countries," the minister told some 1,255 delegates at the
two-day Asia Oil and Gas Conference here.
"China and India are expected to be two major potential consumers in the coming
20 years," he said.
He later told reporters that refineries will be built in China, Singapore,
Indonesia, Malaysia and Syria but declined to elaborate on the partnerships or
the cost of the projects.
"We are supposed to be partners in the refineries and also try to provide the
crude oil for those refineries. The aim is to bring Asian countries together and
to provide crude oil for mutual benefit," he said.
The minister also proposed the creation of an Asian energy market comprising
major suppliers and consumers such as Japan, China, India and South Korea.
Seyed Kazam said the proposed grouping of West Asia oil suppliers and Asian
consumers could bring about "mutual benefit" as Asian countries could invest in
upstream and downstream oil and gas projects.
Oil-rich Iran is the second-largest oil exporter after Saudi Arabia in the
Organisation of Petroleum Exporting Countries. It is also the world's second
largest owner of oil and gas reserves.
He also made a pitch to investors, saying Iran will need 93 bln usd in foreign
investments and more than 43 bln usd in domestic resources by 2014 to boost oil
and gas output.
Iranian oil production is expected to reach 5.3 mln barrels daily by 2014 from
its current level of 4.3 mln barrels per day.
"The country (Iran) cannot meet that level of investment and technology needs
on its on," he said.
Despite United Nations Security Council sanctions on Iran over its refusal to
suspend a uranium enrichment program, Seyed Kazam expressed confidence that Iran
will be able to raise foreign funds.
"No, we are not concerned about the sanctions," he told reporters.
Separately, Iran's state oil company said it will invest in the construction of
an oil refinery in northern Malaysia, part of an ambitious pipeline project to
transport Middle East oil to East Asian countries.
Ghanimi Fard, executive director for international affairs with the National
Iranian Oil Co, said initial discussions are moving smoothly.
"Some works have been done and preliminary discussions have gone very well," he
told reporters at the sidelines of the gathering.
"Crude oil is going to be supplied by the National Iranian Oil Company," said
Fard in the first official confirmation of Iran's participation in the ambitious
project.

Source: Osk Wirenews