Islamic Republic plans to become most productive oil refiner in the Gulf by 2012. (The Media Line)
By THE MEDIA LINE STAFFIran oil 248.88(photo credit: )
Iran plans to become the most productive oil refiner in the Gulf region by 2012, the director of the Refinery and Oil Products Distribution Company, Aminollah Eskandar, was quoted as saying Thursday by the a Teheran Times.
According to the plan, Iran will surpass Saudi Arabia's current capabilities at 2.1 million barrels per day once the new plan has been implemented, boosting the country's capacity to 3.3 million, said Eskandar, adding that only by 2015 would Saudi Arabia reach 3 million.
The plan is estimated to cost $22 billion.
While being one of the most oil-rich countries in the world, second only to Saudi Arabia, Iran has suffered widespread poverty due to its lack of refineries, which has forced it to export crude oil, which fetches a much lower price on world markets than refined products such as gas, which has to be imported.
Predominantly Shi'ite Iran and Saudi Arabia, which is Sunni, are not only competitors in the oil industry but are also involved in a power struggle for dominance in the Arab world.
Saudi Arabia is one of the US's strongest allies in the region and Riyadh has seconded Washington's criticisms of Iran's alleged nuclear weapons program.
Iranian military officials have on numerous occasions threatened to attack US interests and allies in the region should a military operation be launched against its nuclear facilities, prompting increased US sales of military equipment to Saudi Arabia and other Gulf nations.
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