Iran may give up majority stakes

14 November 2005 00:01  [Source: ICB Americas]

Foreign investment in Iran could increase dramatically, as its new government is poised to give up majority stakes in petrochemical projects.

“Our new president is likely to give up majority shares in favor of the private sector and international investors with the will to invest in Iran,” said M.?H. Rahbari, managing director of Iran’s National Petrochemical Company (NPC) at the 25th Annual Latin American Petrochemical Meeting in Mexico City last week.

“This way we can use different capabilities and it will make investors more willing to invest in Iran,” he added. “We are in negotiations with many foreign companies, including those in Brazil and Mexico.”

NPC plans to become a major exporter of petrochemicals, rapidly expanding production in the coming years to take advantage of its hydrocarbon resources.

“Iran is the second- or third-largest owner of oil reserves in the world and the second-largest owner of natural gas behind Russia,” said Rahbari.

By 2010, with the completion of the fourth phase of its five-phase plan, NPC is targeting a capacity expansion of 35 million metric tons versus 1997, including 22 million metric tons of olefins and polyolefins, 8.5 million metric tons of methanol and dimethyl ether, 8.5 million metric tons of urea and ammonia, and 4 million metric tons of aromatics, according to Rahbari.

By the end of phase five, NPC plans to have invested a total of $36.4 billion to boost chemical capacity by 82.3 million metric tons, generating an estimated $26 billion in annual sales, Rahbari added.

Iran story o/m

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