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Iran's Jask Oil Terminal Estimated to Cost $2b

To purchase the terminal’s facilities, including oil pipes, some $600m is required.
To purchase the terminal’s facilities, including oil pipes, some $600m is required.

A major oil terminal is being built in the port of Jask in the southern Hormozgan Province which will have the capacity to store up to 30 million barrels and export 1 million barrels per day of crude oil once completed.

“The Jask Oil Terminal is estimated to cost upwards of $2 billion and be completed by 2021,” Mohammad Saghai, an Oil Ministry advisor, was quoted as saying by the official portal of the National Iranian Oil Company.

“The terminal is part of a development plan in the region that includes the construction of two refineries, a petrochemical complex as well as oil storage units with a total capacity of 10 million barrels in the first phase and 30 million barrels in the second phase,” he added.

A tender has been held for construction of the terminal’s crude storage units, with the winner expected to be announced in three weeks. The storage units will be built under the build-operate-transfer (BOT) model.

The official said that to purchase the terminal's facilities, including oil pipes, some $600 million is required.

"Private investment is critical to developing the terminal," Saghai said, adding that eight private investors have expressed interest in playing a role in the project. On the process of selecting contractors for building the refineries close to the Jask terminal, Saghai said, “NIOC is currently studying proposals from two (unnamed) Iranian private firms."

 

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