Oil Minister Gholamhossein Nozari announces Saturday that Iran is looking for domestic and foreign investment to double oil and gas refining capacity by 2015
Iran, the world's fourth-largest oil exporter, lacks refining capacity and must import huge amounts of costly gasoline to meet its needs, a sensitive issue as the West continues to seek ways to penalise Tehran for its disputed nuclear activities.
Oil and gas refining development in Iran started in 2006. It was planned that the project will be finished in five years, but surging costs and poor state funding are now pushing back the target date of completion.
Iran's access to financing major projects have been hampered by curbs from European banks and energy firms to do business with the Islamic Republic, which is under U.N. and US sanctions over its disputed nuclear activities.
Asked whether international sanctions were hindering Iran's efforts to raise capital for investment in the energy sector, Deputy Oil Minister Mohammad-Reza Nematzadeh told Reuters: "There is problem but the route is not closed and we are doing our job."
Author:
Ksenia Kochneva
