German companies to make 12bn euro investment in Iran

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On December 30, 2015, Posted by , In News, By , With No Comments

Deputy Oil Minister for Petrochemical Affairs Abbass Sherimoqaddam said on Monday that German companies have proposed making 12 billion euro investment in Iran, after removal of sanctions.

Addressing a ceremony marking the anniversary of establishment of National Petrochemical Industries Company, Sherimoqaddam said formerly, foreign companies were scared out of Iran due to sanctions but over the past months, German companies started talks with Iran and offered several proposals for contriution to the petrochemical projects.
He said Germans have made two big proposals to Iran: A big German company will make an eight billion euro investment and another four billion euros.
Commenting on the claim about finalization of the project for supplying petrochemical units with feedstock at 13 cents and said, ‘I am not well informed of the petrochemicals’ feedstock but the price will be announced in coming months.’
As for establishment of petro-refinery units, he said refineries usually are not profitable, so companies set up petrochemical units beside refineries to ensure profitability.
He went on to say that establishment of petro-refinery units in Iran is a right move. ‘Of course, petro-refineries need hefty investment, so new entrepreneurs should follow up the project.’
On shale gas industry development and the start of US gas exports and its impact on the market, he said Iran holds huge gas resources and enjoys exceptional condition worldwide but suitable business conditions should be provided for the purpose.

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