Iran Sets Up New Oil Storage Facility in Bushehr, Press TV Says

Iran has set up a crude oil storage facility with a capacity of 1 million barrels in the southwestern Bushehr province, Press TV reported, citing an Iranian Offshore Oil Co. official.

The storage facility has been domestically built and is located in the Bahregan oil district, said Mohammad-Reza Khajeh- Jahromi, head of the region for the company, according to the article published yesterday by the state-run news channel.

Iran seeks to increase its crude-storage capacity by about 50 percent to 100 million barrels by the end of 2015, the country’s oil ministry said on May 21.

International sanctions against Iran over its nuclear program have hampered crude exports from the second-largest producer in the Organization of Petroleum Exporting Countries. Much of Iran’s unsold March production ended up in onshore and floating storage in April, according to the International Energy Agency. The European Union is set to ban purchases of Iranian crude starting in July, possibly intensifying Iran’s need for additional storage facilities.

To contact the reporter on this story: Ladane Nasseri in Dubai at lnasseri@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

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