Total Waiting for Entrance to Iran’s Petrochemical Gateways

Iran’s petrochemical industry, with more than 50 years of age, is witness of its peak days and is consolidating its position on global markets as well as overtaking oil producing neighboring countries to prove that by guaranteeing the safety and supporting of domestic and foreign investors it could be converted to an effective sinker in the industry and economy of Iran along with global markets, and take the path of growth and developmen

News ID: 76401

Date: 20 September 2017 - 11:31

It could be definitely said that petrochemicals in the oil industry have the highest and the most position in terms of growth, capacity expansion, prevention of crude sale, being present in global market, and attracting foreign investment, which has led to significant growth in non-oil exports of the country. However, what contributes to the continued growth and sustainability of the development of this industry as one of the most basic and most important industries in the world, or make the mother industry is the attraction of foreign investment. The attraction of foreign investment is of particular importance in all countries of the world. Of course, this importance in the oil, gas and petrochemical industries is of great importance, especially in oil producing countries in which Iran is included and many countries are eager to be present in this industry with regard to the maintaining of security and stability. This situation is taken into account more than ever after the implementation of JCPOA.

Meanwhile, foreign investors are sitting at the negotiating table with oil executives to find investment opportunities in Iran and to provide finance for them. In this situation, the petrochemical industry has shown a special interest in the field of foreign investment, and for nearly two years, major companies such as Shell (England), Total (France), Linde (Germany), Mitsubishi (Japan), Hyosung (South Korea), Cement Stamping (Holland) and CNTIC (China) have been eager to be present and invest in Iran. Price and easy access to feedstock, historical record of petrochemical industry and the availability of appropriate infrastructure make investment attractive to the foreigners. The use of the capabilities of Iranian companies, the transfer of knowledge and technology as well as the completion of the chain of petrochemical products are one of the main conditions for cooperation with foreign companies. In this direction, Total Co., along with other European companies, is ready to attend the Iranian petrochemical industry. Referring to the interest of large and international companies to participate in the petrochemical Industry of our country regarding the signing of a contract with Total Co., Managing director of the National Petrochemical Company in an interview with MANA correspondent stated that the company would attend Iranian petrochemical industry in the case of finalization of the negotiations. On this subject and with the Ministry of Oil’s emphasis, Total will be present with the goal of completing the value chain in Iran’s petrochemical industry. Iranian Deputy Oil Minister for Petrochemical Affairs and managing director of National Iranian Petrochemical Company, Marzieh Shahdaie, underlined that the French company-Totalrecently signed a deal with Iran in the upstream field and initially had to be present on the basis of the Ministry of Oil’s emphasis on completing the chain, and the finalization of the future contract in the petrochemical industry would be in the same direction. She declared that as facilitating the conditions for new investments and removing some of the barriers at the same time, European investors are interested in participating in development projects and transferring knowhow of Iran’s petrochemical industry.

Considering how to cooperate with foreign companies, managing director of the National Petrochemical Company added that during the entire process of negotiating with foreign companies for the purpose of concluding a memorandum of understanding and contract, the three conditions for the conclusion of the contract are always emphasized. She referred to the required condition to make the contracts with foreign companies fruitful such as cooperation with Iranian companies, use of the capabilities of Iranian companies, the transfer of knowledge and technology of the day along with the completion of the petrochemical production chain. Considering the National Petrochemical Company as a policy-maker and facilitator in the petrochemical industry which aims at proposing plans to attract new investments for developing development projects, she said that during the post-JCPOA era, cooperation with foreign companies has been facilitated. Moreover, given the development of the petrochemical industry which is dependent on international relations, facilitating banking and insurance issues have made foreign companies interested in being present in our country.

Referring to the experience of companies such as Bassoff, Total, and Shell, the director of the National Petrochemical Company said that these companies have experiences and worked in the petrochemical industry while undertaking technical and economic appraisal. However, sometimes some companies that tend to invest have not been active in the petrochemical industry, and we introduce plans and Iranian partners to them. She said that all barriers and dams would not be broken at once and added: now the situation has been much better and gradually some problems will be solved. Meanwhile, European companies and investors are ready to invest and complete the value chain in the Iranian petrochemical industry. Managing director of the National Petrochemical Company, declared: entry into the downstream and midstream petrochemicals with the caution of the principle of value added, requires technology, and we hope that the process of negotiating with foreign companies will have a positive result for the industry. Some procedures have been taken into account in the midstream industry, but the entry into midstream and downstream industries with higher value added requires technology in which, unfortunately, we have recently accessed some of them. We hope to obtain the required technologies of this sector to negotiate with the international companies.