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| EU advisor: Iran can invest billions into new oil refineries |
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Iranian government can plan ahead, and invest 80-120 billion U.S. dollars in the new and improve refineries as well as technologies which would enable the oil sector to move away from the sale of crude, EU economic advisor Mehrdad Emadi told Trend.
The expert was commenting on the news about Iran considering to stop crude oil exports, and concentrate more on oil products.
Last month Iran's president Mahmoud Ahmadinejad said Iran should stop exporting crude, and focus on producing oil products.
According to Ahmadinejad, countries have been abusing the use of crude oil, and therefore it must be stopped.
Iran's president noted that the price of oil is too much politicized, and not based on economy.
"The president's statement at best should be seen as a desire toward making the Iranian economy less dependent on the export of crude oil, that since July 1 of this year has been included in the list of sanctioned goods by the EU but also through proxy measures by other countries as well," Emadi said.
The expert noted that thus far oil products or derivatives have not been included in the list of goods subjected to international sanctions.
Emadi believes if Iran wanted to move toward the sale of oil-derivatives and find the right markets that could absorb the quantity of sales, the country would have needed to generate income levels comparable to the those generated by the export of crude.
"That is a huge challenge," Emadi said.
The expert added that oil-derivative markets have a much more specialized structure and pricing mechanism which requires long term contracts.
(Source: Trend Az)
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