Iran this week awarded a $230mn contract for development of oil storage tanks at its planned Jask export terminal outside the Strait of Hormuz.
The $2.2bn project’s strategic rationale is sound and President Hassan Rohani is keen for completion by the end of his second term, but with the country in economic meltdown is it viable?
State-owned Petroleum Engineering and Development Co. (Pedec) – a subsidiary of the National Iranian Oil Co. (NIOC) – signed the deal with private Iranian firm Petro Omid Asia and its parent company Omid Investment Management Group on 30 September.
The contract covers construction of twenty 500,000 barrel storage tanks (for a total capacity of 10mn barrels) at Jask and is slated for completion for 2021. There is also a potential $460mn second phase to expand to 30mn barrel storage capacity.
Jask’s location outside Hormuz means it is distant from Iran’s oil fields;...