NICO to Invest $600 Million in Star Oil Refinery

TEHRAN May 8 (Shana): Deputy Minister of petroleum for refining and distribution, Alireza Zeighami reported of 600 million dollars investment by Naftiran Intertrade Company (NICO) in the Persian Gulf’s Star Oil Refinery this year.

Speaking to Shana, Mr. Zeighami noted that up to now 1.3 billion dollars have been invested by the NICO and Foreign Exchange Reserves Fund in Star oil refinery project that aims to process 360 thousand barrels of gas condensate each day.

Stating that NICO is scheduled to invest nearly 800 million dollars in the project, the official said that company invested 200 million dollars in the project last year and will invest the remaining this year.

Star oil refinery has progressed physically by 40 percent, Zeighami said adding the project will come on stream in three phases each with the refining capacity of 120 thousand barrels a day.

According to the official, the first phase of the project with 120 thousand barrels of refining capacity will be launched in next two and half years.

‘The company needs another one billion dollars to be completed and the needed funds will be met through finance and getting loans from banks,’ Zeighami told Shana.

Zeighami went on to say that the National Iranian Oil Refining and Distribution Company (NIORDC), Social Security Investment Company (SSIC), Pension Fund and Indonesian SPC had stakes in the project respectively by 40, 35, 10 and 15 percent adding one of the partners had ceded its stake so private sector investors can participate in the project by replacing the stake.

Star oil refinery with production capacity of 35 million liters of gasoline per day is one the most important projects of the ministry of petroleum.

This is the first oil refinery of Iran uses gas condensate as feedstock and it is slated to convert gas condensate produced in nine phases of the South pars gas field to light and valuable oil products.

The feedstock will be provided through a 36 inches 400 kilometers length gas pipeline.