The National Development Fund is ready to implement the operation of the Petrorefineries Feed Breathing Act

Seyyed Alireza Mir Mohammad Sadeghi, in an interview with the economic reporter of Fars news agency, stated that the law to support the development of downstream industries of crude oil and gas condensates using public funds: this law was approved on August 28, 2018 in the Islamic Council and through an amendment in The final approval was reached on June 5, 1400, the purpose of which was to create plans for petrochemical facilities with propane or butane feed, as well as refinery and petrorefinery facilities with the provision of crude oil or gas condensate feed.

He added: The supply of feed by the National Development Fund means that this feed will be provided as a facility to the project manager from the beginning of operation. In fact, the plan is built with executive capital, but if it reaches 80% of the production capacity, it can use this law and receive feed from the fund’s sources; But after exporting the product, the amount will be returned to the fund.

The necessity of complying with the legal conditions for using the fund’s facilities in breathing the feed of petrorefineries

Mir Mohammad Sadeghi, emphasizing on compliance with some legal conditions for using the fund’s facilities, explained: according to clause a of article 3 “Law on supporting the development of downstream industries of crude oil and gas condensates using public funds”, the use of the share of the National Development Fund Within the framework of the relevant laws and regulations, it is possible only with the permission of the Supreme Leader, on the other hand, in paragraph b of article 1 of the mentioned law, it is defined that the license issued in accordance with part 4 of paragraph c of article 3 “Law on Duties and Powers of the Ministry of Oil” which is The basis of the design and technical and economic calculations of the proposed plan and the specifications of the manufactured products are evaluated and issued by the Ministry of Petroleum; It includes the amount of feed and the rate of respiration of feed and is among the duties of the Ministry of Petroleum.

He clarified: Also, in Article 3 of this law, it is emphasized that the government is obliged, according to the tasks of this law, through the Ministry of Oil, to issue and review the permits for projects up to 2 million barrels per day and to grant a breathing space from the investment of the non-governmental sector to attract capital. support the people.

The member of the executive board and the vice president of banking and credit of the National Development Fund, while emphasizing the progress of 80% of the production capacity of the projects, added: In addition to these projects, the Ministry of Petroleum should introduce the operating banks and the necessary documents and guarantees should be obtained by the bank. Based on that, the fund should grant the facility of breathing feed to the production units.

Mir Mohammad Sadeghi further added: Also, in Article 16 of the Law Enforcement Regulations approved on January 18, 2018 by the Council of Ministers and amended on January 8, 1400, it is stated that the total value of breathing acceptable for the fund during the breathing period of the projects in the coming years from the share of the fund up to the ceiling 2 million barrels per day is according to the time table that must be submitted to the fund’s board of trustees for approval with the fund’s proposal and in accordance with paragraph a of article 3 of the law within 2 months from the date.

The Ministry of Petroleum is responsible for issuing permits for refinery projects to receive feed intake

He explained: According to Article 24 of the executive regulation “Law on supporting the development of downstream industries of crude oil and gas condensates using public funds”, the feed breathing period is from the start of the production of the refinery or petro-refinery with at least 80% of the processing production capacity in the license. The plan is starting, but the issue is that so far no plan has reached this stage of progress and completion of the above steps, including the approval of the Ministry of Oil and receiving bank guarantees.

A member of the National Development Fund’s executive committee, mentioning that the Ministry of Petroleum is responsible for issuing licenses for projects to receive feed intake and the fund has approved the annual commitment ceiling based on the assignment in the meetings of the board of trustees, added: the fund is ready to implement the operation of the feed intake law and daily delivery. 200,000 barrels of oil in 1403 and all the necessary mechanisms have been provided, but according to the method of granting the fund’s facilities; After the approval of the Ministry of Petroleum and the necessary coordination between the applicant company and the relevant bank and verification, that plan will be sent to the fund to use the law of breathing feed.

He explained about the need for the permission of the Supreme Leader of Madzaleh Al-Ali to grant the breath of the feed of the petrorefineries: this is not clearly confirmed in the legal documents of the National Development Fund; In addition, correspondence from the president to obtain the leadership’s permission is underway.

In the end, the member of the Executive Board and Deputy Banking and Credit of the National Development Fund emphasized: the fund is fully prepared to implement the law to support the development of the downstream industries of crude oil and gas condensates using public funds and to supply the breathing of feed to refineries and petrorefineries according to the law. .

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