Iran petrochemical sector ready for more foreign investment: Official

An Iranian deputy oil minister says the country’s petrochemical sector is ready to attract more foreign investment after Iran reached the conclusion of its nuclear talks with the P5+1 group of world powers.

“After the announcement of the Joint Comprehensive Plan of Action (JCPOA), foreign investors will rush to Iran for investment, especially targeting the country’s oil and petrochemical industries,” said Abbas Sha’rimoqaddam, deputy oil minister for petrochemical affairs and managing director of the National Petrochemical Company, on Tuesday.

Earlier on Tuesday, Iran and the P5+1 group reached the conclusion of over a decade of negotiations on Tehran’s civilian nuclear program, with the Islamic Republic and the sextet sealing an agreement, which is a prelude to the Joint Comprehensive Plan of Action between the two sides.

Based on the agreement, the world powers have recognized Iran’s civilian nuclear program, including the country’s right to the complete nuclear fuel cycle. Iran and the six powers also agreed that all economic and financial sanctions against Iran will be removed through a Security Council resolution. In addition, all bans on Iran’s Central Bank, shipping, oil industry, and many other companies will be lifted and billions of Iran’s blocked revenues will be unfrozen.

Sha’rimoqaddam noted that petrochemical industry needs high volume of investment and technology transfer due to spcial nature of its activities.

He expressed hope that JCPOA would pave the way for “the transfer of advanced technical processes and know-how, over which we were facing restrictions as a result of sanctions.”

“We also hope that attraction of foreign investment would lead to new growth in Iran's petrochemical industry,” he added.

The official said Iran's petrochemical industry lags behind goals projected by Iran's 20-Year Vision Plan, adding that the country needs an annual investment of USD 8 billion in order to make up for the past shortcomings.

On April 18, Ahmad Mahdavi Abhari, secretary of the Association of Petrochemical Industry Corporations (AIPC), said Iranian petrochemical industry is capable of attracting USD 70 billion in domestic and foreign investment.

He added that the value of half-finished projects in Iran's petrochemical sector amounts to USD 70 billion, proving that the sector has a good potential to attract foreign investment.

AIPC’s secretary further stated that a final nuclear agreement between Iran and the P5+1 group would greatly facilitate transfer of money and technology to Iran, thus delineating a promising outlook for investment in the country’s petrochemical projects.

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