TEHRAN — Some $16 billion is required to make a significant jump in the nation’s oil refining sector, Mehr News Agency reported on Saturday.

The National Iranian Oil Company (NIOC) has proposed twelve plans for construction of new refineries or development of the current ones. To fulfill these objectives, total credits of $16 billion are needed.

The development of Abadan Refinery, the primary designing of Arak Refinery, and the use of EPC (engineering, procurement, and construction) method for the construction of refineries are some of the measures NIOC has taken to make progress in refining projects.

Privatization of some refineries is also regarded as an important move to attract investments in this sector. This would be realized through the implementation of the Article 44 of the Constitution.

In addition, absorbing small capitals via the establishment of stock exchange and popular participation are some of the proposed methods ahead for the privatization of refining sector.

Moreover, participation of private sector in creation of new refining capacities via buy-back plans was envisaged in the Second and Third Five-Year Development plans. Nevertheless, the objectives have not been realized because of the low-level profit markers and subsidy of the products.

Curbing gasoline import is the primary purpose of the said projects. To this end, increase in production capacity, justifying subsidies, and fuel conversion plans are the most significant solutions to be implemented.