TEHRAN – Iranian Oil Ministry has authorized 74 domestic companies for the construction of petro-refineries across the country, IRNA reported on Monday, quoting Deputy Oil Minister for Planning Houshang Falahatian as saying.

According to Falahatian 117 companies had submitted their requests to the Oil Ministry among which 74 have been approved.

Increasing the country’s petro-refining capacity has recently become a priority for the Oil Ministry as a key defense mechanism against the impacts of the U.S. sanctions on the country’s oil industry.

In this regard, one of the major goals that the ministry has been pursuing is signing various contracts with domestic contractors.

In early February, Head of Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA)’s energy committee, Reza Padidar, had announced that the country’s capable private sector is ready for participation in the oil ministry’s refinery and petro-refinery projects.

Back in June 2019, the Research Center of Iran’s parliament said in a report that petro-refineries are two times more profitable than refineries and suggested that National Iranian Oil Company (NIOC)’s new refinery projects be defined as petro-refineries.

The report dubbed “Petro-refineries, their role in completing the oil value chain and the status in Iran’s oil industry” stated that constructing petro-refineries is one of the most important ways to alleviate severe economic impacts of price fluctuations and achieve a much higher margin of profit.

EF/MA