DUBAI, United Arab Emirates- An official with Sepahan Oil Co. said last week that the Iranian refiner is conducting a feasibility study to consider adding Group III capacity to its base oil plant in Esfahan, Iran. Sepahan expects to decide within a few months whether to undertake a project.
Sepahan Commercial Manager Jamshid Rostampour referred to the feasibility study during a Sept. 12 presentation here at the ICIS Middle Eastern Base Oils and Lubricants Conference. He said management is considering an upgrade because it anticipates continued increase in demand for Group III stocks.
With capacity to make 7,100 barrels per day, the Esfahan facility is the largest of four base oil plants in Iran. Industry observers say Sepahan, like other Iranian producers, has become more active in the export market the past two years.
Rostampour did not discuss how much Group III capacity Sepahan might install or indicate how long the project would take if the company decides to proceed.