TEHRAN - The investment and business manager of the National Iranian Oil Company (NIOC) said with the implementation of skid-mounted oil processing unit (SOPU) projects under the Public- Partnership (PPP) model, 12 percent of the country's crude oil processing will be carried out by the private sector.

Amir Moghiseh, in an interview with Shana, noted that in past, crude oil processing units were constructed in a traditional way under EPC contracts, adding: “The duration of such contracts were up to three years, but their implementation took more than five years.”

The official stated that in the first phase, the daily processing of 115,000 barrels of crude oil in the Mansouri (Asmari), Qal'eh-Nar, Kabud, and Balarud fields were entrusted to the private sector under PPP contracts.

In the second phase, six contracts worth $1.671 billion have been signed for the daily processing of 315,000 barrels, in Mansouri, Abteymur, Ramshir, Keranj, Golkhari, and Mansour Abad fields, he said.

According to Moghiseh, a total of 430,00 barrels of crude oil will be processed by the private sector in the form of SOPU under PPP contracts, of which 190,000 barrels will be for increasing production and 240,000 barrels for maintaining output and the quality of oil production.

With the implementation of skid-mounted oil processing unit projects under the PPP model, 12 percent of the country's crude oil processing will be carried out by the private sector.

Investment and business manager of the NIOC, finally noted that the duration of the total contracts for the construction of the mentioned units is less than 10 years which is significantly less than the traditional contracts that took more than five years each.

“Since the sector has the motivation to complete these projects faster and receive their payment, it will be able to do so in a shorter period,” he explained.

EF/MA