$40b Investment Opportunity in Petchems Industry
IRAN NEWS ECONOMIC DESK
TEHRAN – Oil minister said that there is an investment opportunity worth $40 billion in the petrochemical industry, noting that $30 billion should be invested in the petrochemical industry within the next five years.
Bijan Namdar Zangeneh made the remarks at the Conference on Development of Iran Petro Financial System (Petrofinansys 2020) in Tehran yesterday, saying there are projects worth $12 billion in petrochemicals that have not yet been started. “There are also downstream petrochemical projects, which together create a $40 billion investment opportunity in the petrochemical industry,” he added.
Zanganeh went on to say that the oil industry needs to be invested $25 billion annually, and if this goal fails, the problem will spread to other sectors as well.
He pointed out that there are many ways to continue the financial life cycle of companies, adding, “We use and will utilize the National Development Fund resources, foreign finances, banking, and stock exchange.”
According to Zanganeh, the required financial resources for unfinished petrochemical projects are over $30 billion and investors can finance it, “but if we can get it from micro-liquidity, investment and development in the oil industry will be expanded”.
Zanganeh added that oil refineries are under construction, with up to $20 billion worth of investment, and will be built and invested mostly by the private and semi-private sectors.
“Because of the sanctions, access to state-of-the-art technology has been reduced but we have equipped universities to produce technology,” the oil minister said.
“Financing must be done in a way that is feasible in the capital market and that people can invest wisely,” the minister emphasized.
He also pointed to some exploration and extraction projects of the ministry, saying that the ministry does not expect Iranian companies risk involving the exploration activities but it wants those companies to develop the explored areas or protect those fields which are under exploitation.
Zanganeh went on to say that the ministry is determined to boost cooperation between oil industry and universities and most oo local universities have been equipped with the modern technologies in order to help the oil industry.
Meanwhile on the sidelines of the conference, the minister said that the government has not yet decided to earmark extra quota of gasoline to cars for the New Year holiday.
On the West Karoun fields, he said the production capacities of the fields have been five-folded and the projects are progressing despite problems.
