Iran plans $2.5bn oil tanker expansion

Iran is renting its oil tankers to foreigners after the lifting of sanctions and plans $2.5 billion of investment to renovate and expand the fleet, a senior official says.

“After two years of constant efforts, two important plans of the National Iranian Tankers Company including a five-year strategic program and investment were approved,” its managing director Ali Akbar Safa'ei said on Sunday, Press TV reported.

“This program includes $2.5 billion of investment in various sectors which will herald a bright future for the company in diversifying its income basket and expanding its activities,” he said.

Safa'ei touched on the interest shown by foreign banks and financial institutions in resuming cooperation with Iran, saying NITC was the first Iranian company to resolve issues related to obtaining finance.

NITC is also “the first Iranian company able to rent its ships to foreign firms after the cancellation of sanctions,” he added.

Iran owns the world’s largest fleet of oil supertankers consisting of 42 VLCCs (very large crude carriers), each able to carry 2 million barrels of oil.

With sanctions in place, NITC didn’t scale back activities. Instead it put orders for the construction of 20 VLCCs with Chinese companies which have delivered them over the past two and half years.

Two Chinese firms are being cited pushing for multi-billion dollar deals with Iran to modernize its shipping fleet and build a high-speed railway.

SS