By John Lee.
A $5.5 billion investment by the Indian Oil Corporation (IOC) will increase the capacity of the firm’s smallest refinery, co-owned by Iran, to 300,000 barrels per day, according to a report from OilPrice.
Reuters reports that the project to renovate Chennai Petroleum Corp.’s Nagapattinam refinery will allow Iran to meet demand for refined oil products in southern India.
The first phase of the project will raise the refinery’s output to between 120,000-180,000 bpd, with the 300,000 bpd goal being met at the completion of the second phase.
Earlier this week, Indian Oil Minister Dharmendra Pradhan said his country owed Iran over $2.55 billion in unpaid oil dues, mostly to the private company Essar Oil.