Iran steps up Asia profile

Oil-rich Iran Monday announced that it will help build five new refineries across Asia, three in Asean, with a total capacity of 1.1 million barrels per day.

The huge project is part of Iran's continuing bid to bolster ties in the region.

"Iran has finalised feasibility studies for five refining projects in five Asian countries with a total capacity of 1.1 million barrels per day," Seyed Kazam Vaziri Hamaneh, Iran's petroleum minister, said.

Seyed Kazam said that the projects were part of Iran's attempt to boost cooperation with Asian countries, adding that his nation would provide the crude oil.

"Those are some of the cooperation opportunities which I hope will be supported by Asian countries," the minister told some 1,255 delegates at the two-day Asia Oil and Gas Conference here. "China and India are expected to be two major potential consumers in the coming 20 years," he said.

He later told reporters that refineries would be built in China, Singapore, Indonesia, Malaysia, and Syria but declined to elaborate on the partnerships or the costs of the project.

"We are supposed to be partners in the refineries and also try to provide the crude oil for those refineries. The aim is to bring Asian countries together and to provide crude oil for mutual benefit," he said.

The minister also proposed the creation of an Asian energy market comprising major suppliers and consumers such as Japan, China, India, and South Korea.

Seyed Kazam said that the proposed grouping of West Asia oil suppliers and Asian consumers could bring about "mutual benefit" as Asian countries could invest in upstream and downstream oil and gas projects.

Oil-rich Iran is the second-largest oil exporter after Saudi Arabia in the Organisation of Petroleum Exporting Countries. It is also the world's second largest owner of oil and gas reserves.

He also made a pitch to investors, saying that Iran would need $93 billion in foreign investments and more than $43 billion in domestic resources by 2014 to boost oil and gas output.

Iranian oil production is expected to reach 5.3 million barrels daily by 2014 from its current level of 4.3 million bpd.

"The country [Iran] cannot meet that level of investment and technology needs on its on," he said.

Despite United Nations Security Council sanctions on Iran over its refusal to suspend a uranium enrichment program, Seyed Kazam expressed confidence that Iran would be able to raise foreign funds.

"No, we are not concerned about the sanctions," he told reporters.