Oil & Gas

Iran’s PEDEC seals deal for construction of 10mn barrels crude oil storage tanks

Iran’s Petroleum Engineering and Development Company (PEDEC) struck a Build–operate–transfer (BOT) contract with a domestic firm for construction of 10-million-barrel crude oil storage tanks.

The Build–operate–transfer (BOT) contract was signed on September 30 by PEDEC CEO Touraj Dehghani and Asghar Gorzin, CEO of Petro-Omid Asia, and Ahmad Ebrahimi, the Managing Director of Omid Investment Management Group, as part of the Iranian Petroleum Ministry’s strategic plan to develop Jask Port and deliver crude oil from Goreh, Bushehr, to Jask, southern Iran.

The project will be implemented with 200 million euros in initial investment over a period of three years. The tanks will be operated for a period of 15 years.

The National Iranian Oil Company (NIOC) has possessed about 5000 acres of coastal land located 65 kilometers west of Jask city, near Mubarak Mount, for construction of special oil, gas, refining and petrochemical projects. Thanks to a permit for construction of the 42-inch Gorejh-Jask crude oil pipeline, part of the land in western Jask has been allocated for the construction of an oil terminal for export of crude oil and construction of crude oil storage tanks at Jask port, and construction of these tanks are now on the agenda of NIOC.

The crude oil storage tanks are being built with 10 million barrels of light and heavy crude oil storage capacity, and include 20 floating roof metal tanks, each with a capacity of 500 thousand barrels. These tanks will store the crude oil pumped from the 42-inch Goreh-Jask oil pipeline, and pumps it to seabed pipelines and SBMs.

The project can be expanded to a storage capacity of over 30 million barrels of crude oil.

In accordance with the terms of the contract, the investor undertakes to, within three years, provide capital, designing, procurement of the required goods and equipment, construction and commissioning of the facility, and repair, maintain and operate it within 15 years. The ownership of the complex after the 18-year period will be transferred to the National Iranian Oil Company.


PEDEC in brief

Petroleum Engineering and Development Company (PEDEC) was established in 1994 aiming at supervising the engineering and development of projects by planning, engineering, constructing, and implementing giant oil and gas projects at National Iranian Oil Company (NIOC). PEDEC, as the development arm of NIOC, studies and operates development projects to explore, extract, and produce crude oil, natural gas, and other solid and liquid hydrocarbons (save for coal) to meet NIOC’s requirements, improve upstream technology, and make the most of local sources in implementation of projects. Presently, PEDEC enjoys about 500 well-experienced technicians and capable managers.

To implement a large number of onshore and offshore projects, PEDEC is working with many engineering and contracting companies both within and outside the country’s borders. The company, thereby, provides a platform for the transfer of technology in oil and gas related projects and ushers in an era of technology self-sufficiency in Iran.

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