Lavan Oil Refinery in southern Hormozgan Province has saved about $30 million by using indigenized parts and equipment manufactured by domestic companies instead of importing them, managing director of the oil refining company said.
“Nearly 25,000 items have been produced for the first time at the refinery’s request, using the expertise and capacity of local manufacturers, and this has saved the company’s expenses,” Mohammad Ali Akhbari was also quoted as saying by IRNA.
Speaking about the refinery’s profit, he said, “Using all its capacities, Lavan Oil Refining Company achieved the highest net profit since the beginning of its activities in the last Iranian year [ended March 20, 2021].”
The company made a profit of $66 million last year, he added.
Established in 1976 on Lavan Island in Hormozgan, the refinery has a capacity of processing 55,000 barrels of oil per day. It receives 35,000 barrels of crude oil from Salman, Reshadat, Balal and Resalat offshore oilfields as well as 20,000 barrels of ultra-light condensates from South Pars Gas Field.
The refinery’s total gasoline production capacity is 2.8 million liters per day and its quality meets Euro-4 standards. It also produces 4 million liters per day of diesel and 100 tons of LPG a day.
Its location near the energy hub of Iran (Asalouyeh) and easy access to free waters are among the advantages of the refinery.
As there are massive sweet gas reserves on Lavan Island, there is a possibility of building processing units for the production of more value added products and creating diversity in the product portfolio.
Lavan Island is situated 18 kilometers south of the Persian Gulf coast. The region produces 105,000 barrels of oil per day. Lavan has a two-berth jetty, which can accommodate vessels weighing up to 250,000 deadweight tons. Lavan region's storage capacity is 5.5 million barrels.
