World  Business and Economic Analysis 


 Iran’s crude oil exports to India in March 2016 surges from 290 to 505 thousand barrels per day turning the South Asian country into Iran’s second largest oil customer.

During sanction years, India purchased about 20 per cent of Iran’s oil exports equal to an average of 200 thousand barrels per day.

Following the implementation of the Joint Comprehensive Plan of Action (JCPOA), India increased its oil imports from Iran as Indian refineries have made new oil purchase proposals.

The surge in oil exports marks a significant achievement for the Iranian government in development of activities in regional markets after the removal of sanctions.

In March 2016, India’s Essar Oil refinery ranked first in importing crude oil from Iran while Mangalore Refinery and Petrochemicals Limited (MRPL) stood in the second place.

Also after a six-year hiatus, Reliance Petroleum Limited of India purchased a shipment of oil condensate produced at Iran’s Forouzan oilfield.

On the basis of a report released by Iranian Ministry of Oil’s Office for OPEC affairs and relations with energy organizations, the average volume of India’s imports from Iran reached 4.35 million barrels per day in the first three months of the year 2016 indicating a 500-thosand increase as compared to same period a year earlier.

Iran remains as the third supplier of India’s oil demands following Saudi Arabia and Iraq.

The South Asian country’s imports from Iran reach a total of 505 thousand barrels in March revealing a 290-thousad growth as compared to February, 2016.

Currently, Iran ranks third among oil exporters to India while at the beginning of 2016 the country only stood in the sixth place.

Recently, Reuters touched upon Iran’s oil exports to India reporting “India’s crude oil imports from Iran have reached more than 500 thousand barrels per day marking the highest level in the past five years.



Japanese ambassador to Iran said Mon. his country is preparing to send a high-ranking trade delegation to Tehran and resume high level of economic relations with the Islamic Republic.

Hiroyasu Kobayashi, Japan’s Ambassador to Iran, in a meeting with Governor of Eastern Azerbaijan Esmaeil Jabbarzadeh on Monday, said various MoUs have been signed between Tehran and Tokyo in the past eight months and all major Japanese companies in Tehran have increased their staff two to three times.

“The signing of an investment MoU and the opening of a $10 billion credit line are very promising for the implementation of big project in this country,” he said.

Iran-Japan’s first economic MoU was signed in February in the presence of Iranian economy minister and Japanese Foreign Minister Fumio Kishida. During the meeting, the two sides also reached an agreement to open a $10 billion credit line for financing the country’s projects and developing foreign investment capacities.  

The Japanese envoy added that Japan is also participating in environmental projects and the revival of Lake Urmia; “This is the third consecutive year that Japan has contributed $1 million to the UN for the revival of Lake Urmia, and various projects in social and economic fields have been executed in this regard,” he said.

“Holding conferences is the best step toward expanding cooperation and we are ready to cooperate with East Azerbaijan in various areas, particularly in agriculture, environment and tourism,” he said.



An Interview with Mohammad Berami
Managing Director of Siraf Energy









Mohammad Berami started his petrochemical career with the Iranian National petrochemical company in 1973. During his 43-year tenure in the petrochemical industry, he assumed different responsibilities in Iranian as well as other reputed international companies.
He served as the Managing Director and Board Member as well as Design and Maintenance Engineer for the Razi, Mobin, Zagros, Shiraz, Siraf and Tabriz petrochemical companies. He also held many respectable positions at several other petrochemical complexes in Iran.
He holds a degree in electrical engineering from Shiraz University and completed his Master degree in Instruments Engineers from the University of Huddersfield Polytechnic in  UK .
World Business Year talks to Mohammad Berami, the industry expert with more than 43 years of experience in the petrochemical sector, on investment opportunities and potential challenges for foreign investors in Iran.

What is your assessment of the investment opportunities in the petrochemical sector in Iran?

After the lifting of sanctions against the country, many international companies flocked to Iran with the purpose of assessing the potential investment opportunities in the country.  There are many investment opportunities in Iran, but it is the foreign investors who should have the courage to initiate the work. Often, many investors avoid facing the challenges and risks associated with investment in Iran.
The Basf Company has had a meeting with the Iranian petrochemical company for investment in Assaluyeh.

Any company that has success stories in petrochemical investment?

The Razi Petrochemicals is one of the success stories for investment in the petrochemical sector. As matter of fact our expectation is very high. We expected that giant petrochemical companies will come to Iran for investment in new projects.
Due to the privatization of the state-owned companies, the investment situation in the petrochemical industry has substantially changed. Earlier, the Iranian petrochemical companies had to sell their products to the Ministry of Agriculture. But now everything has been changed with privatization  in favor of private sector.  The petrochemical complexes can sell and export their products to domestic and international market.
What makes Iran a different destination for investment compared to the other countries?
There are many advantages of investing in Iran, including highly competitive prices for gas-based raw materials, rich ethane content in the country’s gas reserves, easy access to the ocean for export is main advantage, presence of highly  constructing service engineering  companies, cheap labor force and access to growing international market are big drivers for investors to invest in Iran.

What challenges do you think investor face with in Iran?

There is a bureaucratic red tape in Iran’s administration, but Investors should be patient because the government supports creating jobs. Investor should consider investing in other sectors like accommodations, hotels construction, health centers in Energy zones which can bring economic development   . There are  a few hotels but they are not sufficient and need more  investment in Hotel and accommodation sector .

What is your message to International Investment community?

Having 43 years of experience in petrochemical industry, has created in-depth knowledge for me on Iran’s petrochemical sector.  I can assure them that there are many people like me who are willing to share their knowledge and experience. We are even ready to tackle obstacle and challenges to pave the way for their investment with peace of mind.  

کتاب عملیات بانکی در عرصه بین الملل -سرفصل ها،ضمائم ،توصیه صاحب‏نظران ارزی و مدیران ارشد بانکی

Investment Consulting &Project Finance


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