Iran plans to pass 40 percent of the shares of the state-controlled Iranian Oil Terminals Company to the private sector. The government decided in a recent session of the cabinet to convert 40 percent of its shares to the so-called “Justice Shares,” reported Mehr News Agency on Friday. Iranian Oil Terminals Company has four hubs loading more than 2,000 oil carrier tankers per year and is a part of the National Iranian Oil Company (NIOC).
Quoting the head of the privatization working group at NIOC, the report said that the company was initially opposed to the transfer, because the terminals are upstream.
“However, the Iranian Privatization Organization rejected the NIOC proposal for an exception in this case,” said Ali Kardour.
Kardour emphasized that, after the transfer of the 40 percent of ownership of the terminals, the expansion of oil storage facilities must be carried out in partnership with the private sector.
“The ownership of the jetties, metering facilities and storage tanks will still remain in government hands.”
As to the specific terminals, he explained: “The transferred 40 percent shares include the oil terminals at the port of Kharg Island and Asalouyeh (on the Persian Gulf) and Neka (on the Caspian Sea).”
According to Kardour, there will also be partial transfer of shares from the oil terminals under construction, such as those in Chabahar and Jask port.
The waves of privatizations in Iran have been criticized by both labor and business leaders, albeit for different reasons.
Quoting the head of the privatization working group at NIOC, the report said that the company was initially opposed to the transfer, because the terminals are upstream.
“However, the Iranian Privatization Organization rejected the NIOC proposal for an exception in this case,” said Ali Kardour.
Kardour emphasized that, after the transfer of the 40 percent of ownership of the terminals, the expansion of oil storage facilities must be carried out in partnership with the private sector.
“The ownership of the jetties, metering facilities and storage tanks will still remain in government hands.”
As to the specific terminals, he explained: “The transferred 40 percent shares include the oil terminals at the port of Kharg Island and Asalouyeh (on the Persian Gulf) and Neka (on the Caspian Sea).”
According to Kardour, there will also be partial transfer of shares from the oil terminals under construction, such as those in Chabahar and Jask port.
The waves of privatizations in Iran have been criticized by both labor and business leaders, albeit for different reasons.