Investment Management

Mission

A review of developments in Iran’s oil refining industry indicates that, over the past several decades, insufficient investment has been made in the modernization and upgrading of existing refinery process units, as well as in the construction of new refineries and the implementation of integrated petro-refining projects.

The development of the oil refining industry has always required both access to technology and expertise, as well as the availability of adequate financial resources. Prior to the intensification of international financial and non-financial sanctions, access to these key components of the refining value chain was considerably easier than it is today. However, for various reasons, including the limited attention given to the refining sector within the governance structure of the Ministry of Petroleum at the time, the necessary focus and investment were not directed toward refining industries.

Nevertheless, factors such as the growing domestic demand for petroleum products, the introduction of new international regulations and standards for petroleum products—including the IMO 2020 regulations governing marine fuels—the significant impact of low-quality petroleum products on air pollution in major cities, and changes in market demand patterns for petroleum products have led senior industry policymakers to place greater emphasis on upgrading existing refinery process units and implementing petro-refinery projects aimed at increasing both the quantity and quality of higher value-added products.

Under these circumstances, financing has emerged as one of the most critical requirements for implementing development projects within Iran’s refining industry. Given that traditional corporate financing methods have become increasingly constrained due to international restrictions and government financial limitations, the utilization of innovative project-based financing mechanisms founded on financial engineering principles, with a focus on the capacities of money and capital markets, as well as the development of new international financial cooperation frameworks, can play a significant role in attracting investment resources, facilitating financial transactions, and supporting the sustainable development of the refining sector in line with the principles of a resilient economy.

In response to these needs, the Investment Management Department (and International Affairs) was established to formulate strategic financing and investment attraction programs. Its mission includes identifying domestic and international investment opportunities and hubs, exploring mechanisms to enhance national and international partnerships, attracting financial facilities and funding from relevant institutions, and directing, managing, and developing investment and international relations activities in the fields of refining, petro-refining, petroleum products transportation, and distribution. The Department also plays a key role in advancing energy diplomacy within the National Iranian Oil Refining and Distribution Company (NIORDC).