Iran and a Brazilian company have signed a memorandum of understanding to build a new oil refinery in Latin America, Iran's deputy minister of petroleum said Saturday, according to Iranian Mehr news agency.
"If a final agreement is reached between the two countries, they will build the new Latin America refinery, which is expected to be able to process 300,000 barrels per day of crude oil," Iranian Mehr news agency quoted Abbas Kazemi.
The National Iranian Oil Refining and Distribution Company will be the first partner but Kazemi did not name the Brazilian partner. With the deal, Iran aims to secure long-term demand for the country's exported crude oil, Kazemi stated.
After the easing of sanctions against the country, Iran has been escalating its investments in the hydrocarbon sector by trying to attract foreign energy companies while also researching energy investment opportunities abroad. Iran's efforts could be described as preparations for the post-sanction period.
As part of the country's escalation in investments, Iran is currently negotiating to build a refinery in the home of its second biggest oil customer, India, according to Kazemi. The new refinery is proposed to have a capacity to process 400,000 barrels of crude oil per day.
Should a deal be made, Iran's oil refining company will build the refinery with an Indian partner and each company will have a 50 percent share, Kazemi said.
By Ugur Serhan Ozcan
Anadolu Agency
ugur.ozcan@aa.com.tr