Iran to build 5 refineries in Asia

By Roziana Hamsawi, Business Times

Malaysia, June 12 2007

IRAN is finalising details on five proposed refinery projects in Asian countries, including Malaysia, with a total capacity of 1.1 million barrels per day (bpd).

Its Petroleum Minister, Seyed Kazem Vaziri Hamaneh, said there is no time frame when the projects, which are ventures with local partners, will be completed.

Apart from Malaysia, Iranian firms are planning to invest in the building of refineries in Indonesia, Singapore and China.

Seyed Kazem said that some of the project details have been finalised, while others are still being discussed.

"There is no specific timetable," he told journalists after delivering a keynote address on the political and economic scenario facing the energy industry at the 12th Annual Asia Oil & Gas Conference in Kuala Lumpur yesterday.

He said the partnerships are "to bring to the Asian countries the synergy for mutual relationships as we provide them with the crude oil".

In Malaysia, market talk has it that a subsidiary of SKS Ventures Sdn Bhd has offered Iran some shares in a refinery it is building in Malaysia.

In Indonesia, PT Pertamina and the National Iranian Oil Refinery & Distribution Co are reportedly proposing to build a US$5.3 billion (RM18.3 billion) 300,000 bpd refinery there.

Earlier in his keynote address, Seyed Kazem called on oil-consuming countries from Europe and Asia to invest in Iran's energy sector.

"With 136 billion barrels of oil reserves and 28.2 trillion cubic metres of natural gas, we are the second largest world producer and capable of playing an important role in the world energy industry," he said.

He added that Iran's oil production is expected to reach 5.3 million bpd by 2014, from the current 4.3 million bpd.

"We aim to maintain our position in the international energy market and play a greater role in ensuring supply," he said, adding that Iran will need US$93 billion (RM321.8 billion) foreign investment "as we cannot meet this on our own".

Seyed Kazem also said that Iran currently has a refining capacity of 1.65 million bpd and that this will grow to 2.9 million in five years. This will require an estimated investment of US$12 billion (RM41.5 billion), he added.