Siraf Mega Project on Schedule

Siraf Mega Project on ScheduleSiraf Mega Project on Schedule

Plans have been made to provide private sector investors with three pieces of land allocated to construct Siraf Refining Park, aka the Octopus of Persian Gulf, in the current Iranian year (ending March 19, 2016), director of Siraf Refineries' Infrastructure Company said on Tuesday.

"The contracts to purchase processing and utility units' licenses from multinational foreign companies will be signed in the near future," Alireza Sadeqabadi was quoted as saying by Shana.

Siraf project is the first fully private joint project in Iran's oil sector. Private companies will use their money to build eight processing plants, each with a capacity of 60,000 barrels a day.

According to Sadeqabadi, the engineering, procurement and construction contractors will be selected by SRCI next year to ensure that the whole project is completed as required and on time.

The official noted that site preparation is being completed ahead of schedule and the use of innovative approaches in preparing the land has helped them save $1 million.

Referring to financial constraints in the Oil Ministry, Sadeqabadi said, "Siraf project is the first Iranian venture in which all phases are carried out by the private sector, fully implementing the policies outlined in Article 44 of the constitution. The project has accomplished a national objective by bringing eight private investors in one venture."

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 refining park will convert 480,000 barrels of South Pars Gas Field gas condensates per day to high value-added products such as naphtha and liquefied petroleum gas.

The project is to be completed in three years at an estimated cost of $3 billion in the Pars Kangan region of Pars Special Energy Economic Zone, between phases 13 and 19 of South Pars Gas Field.

Sadeqabadi believes that proximity to export hub, reducing the cost of constructing export terminals and transporting gas feedstock, availability of water supplies from the Persian Gulf and utilization of Asalouyeh power plant are among the advantages of Siraf complex.

"Companies involved in the construction of the refinery include Tamin Petroleum and Petrochemical Investment, Petro Farayand Energy, Falcon Naregan Sazeh, Tanavob, Namvaran, Energy Amin Kasra and RAMPCO Group," he said.

Sadeqabadi noted that the Oil Ministry broke down the large Siraf refinery contract into eight smaller ones to help raise funds for the construction phase.

Several investors from China and South Korea, South Africa and Kuwait have voiced their willingness to invest in refineries in Iran's Siraf region in Pars Special Economic and Energy Zone.

"Eight western European companies are keen to invest in Iran's $3 billion Siraf Oil Refinery project. We will choose from among eight western European companies that want to be involved," he said, declining to name the companies.

The Siraf complex is in the coastal city of Asaluyeh near the South Pars offshore gas field in southern Iran.