Private Firms Supplying Siraf Refinery Needs

Private Firms Supplying Siraf Refinery NeedsPrivate Firms Supplying Siraf Refinery Needs

Almost 90 percent of the entire equipment and commodities utilized in Siraf refineries project will be procured by domestic manufacturers, director of the project said, Shana news agency reported Sunday.

"One of the main reasons behind splitting the project into eight 60,000 barrel  refineries instead of four 120,000 barrel unit, was to enable utilize domestic potentials, Alireza Sadeghabadi said, noting that only 10 percent of the equipment and machinery will be supplied from abroad.

Pointing to the fact that the oil ministry is legally restrained from investing in midstream and downstream projects, the official said the task must be undertaken by private investors to help further development of the country.

Siraf project is the first Iranian venture in which all phases are carried out by the private sector, putting in full practice policies outlined in Article 44 of the constitution, Sadeghabadi noted.  "Siraf project has accomplished a national objective by bringing eight private investors into one project."

 Article 44 divides the economic system into three main sectors, namely public, cooperative and private. It calls for new opportunities for the private sector and boosts privatization.

The Siraf complex is in the coastal city of Assaluyeh near the South Pars offshore gas field. Construction cost of each refinery is estimated at $265 million.

Added to this figure is the general utility expenditure, and the final cost will be around $300 million.

The project, which is said to be the biggest gas condensate refining complex in the Middle East, is to be completed in three years.

Proximity to export hub, reduction in costs of constructing export terminals and transporting gas feedstock, availability of water supplies from the Persian Gulf and utilization of Assalouyeh power plant are among the advantages of Siraf complex.