Based on the approved resolution for the support of developing oil and gas downstream sectors, the contractors implementing refinery projects across the country can request to change their legal project license into petro-refinery after receiving proof of financial capability and approval of their development plan by the Oil Ministry.
As reported by Shana, this resolution was approved in a cabinet meeting led by President Ebrahim Raisi.
Increasing the country’s petro-refining capacity has recently become a hot topic among Iran’s top research institutions and centers as a key defense mechanism against the impacts of international conditions on the country’s oil industry.
Experts and analysts argue that in addition to generating more revenue, the conversion of crude oil to oil products will have many other benefits including creating new job opportunities, economic prosperity, and reviving other industries. And most importantly, it will lead to a stronger economy that could easily withstand international pressures.
Based on the national budget bill for the current Iranian calendar year (started on March 21), Oil Ministry has been authorized to use various resources including the private sector and foreign investments to construct petro-refineries with a total capacity of 300,000 barrels per day across the country.