date : 17 May 2020

Signing of a contract for implementing the project for improving the productivity of the wax extraction department with the goal to increase the production of base oil and to increase the quality of wax byproducts

The contract for the project for improving the productivity of the wax extraction department of Tehran refinery was signed with the goal to increase the productivity of base oil and to increase the quality of wax byproducts by and between Iranol Oil Company and The consortium of Faranegar Sanat and Nosan companies

The public relations and advertisement office of Iranol oil company reports that during the ceremony for signing the contract for improving the productivity of wax extraction department which was held on Sunday, May 17th, the supervisor of Iranol oil company stated: The project for improving the productivity of the wax extraction department in Tehran oil making refinery is approved in order to optimize the utilization of refining procedures (improving the productivity), producing products with more added value, increasing production, and increasing profitability of the company in 2 phases

Mohammad Hossein Razzaghi explained the contract and added: The basic engineering of the first phase of the project was carried out in previous years and according to the plans of the consulting engineer, it was agreed to increase the general level of filtration of the MEK unit in order to improve productivity regarding wax extraction

Mr. Razzaghi added: During the first phase of the project and through the added 5% of the total productivity of the unit, the total base oil production will increase equal to 11 thousand tons per year without added feed and by producing wax with oil less than 10%, the added value of this byproduct also receives a significant increase

 The supervisor of Iranol oil company added: The total investment of the project is estimated to be approximately 968 billion IRR of which about 168 billion IRR is the fulfilled costs of the project including purchase and installation of filters, constructing halls and control rooms and underground piping and the rest i.e. 800 billion IRR is related to the EPCC contract

He added that the time for completing the 1st phase of the project is approximately 22 months explained: By achieving the 1st phase of the project, the necessary infrastructure for implementing phase 2 of the project, the goal of which is producing dry wax with oil percentage of less than 1% and high added value, and also a 30% increase of refining productivity and subsequently increase of exportation capacity of the company will be realized

 It should be noted that the phase of study and preparing feasibility studies and technical and economic justification of phase 2 is completed which would require the license of a valid international company

It should be noted that during this ceremony, Mr. Makhdoomi, the managing director of Tamin Oil, Gas and Petrochemical Investment Company (Topico) and board members and the directors of the parties of the contract were present