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PEDEC signs contract with domestic firm for crude oil storage tanks

Published by , Editorial Assistant
Tanks and Terminals,

Iran’s Petroleum Engineering and Development Co. (PEDEC) has struck a build-operate-transfer (BOT) contract with a domestic firm for the construction of crude oil storage tanks with a 10 million bbls capacity.

The BOT contract was signed on 30 September 2018 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 in initial investment over a period of three years. The tanks will be operated for a period of 15 years.

The National Iranian Oil Co. (NIOC) owns approximately 5000 acres of coastal land located 65 km 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 in. Goreh-Jask crude oil pipeline, part of the land 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 is now on the agenda of NIOC.

The crude oil storage tanks are being built with 10 million bbls of light and heavy crude oil storage capacity, and include 20 floating roof metal tanks, each with a capacity of 500 000 barrels. These tanks will store the crude oil pumped from the Goreh-Jask oil pipeline, and pump it to seabed pipelines and synthetic base muds.

The project can be expanded to a storage capacity of over 30 million bbls 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 NIOC.

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