DUBAI: Iran has started negotiations to buy shares in oil refineries in Europe, Latin America and Asia, the deputy oil minister was quoted as saying by Mehr news agency on Tuesday.

“Buying the oil refineries or their shares abroad is the policy of Iran after the lifting of sanctions,” said Abbas Kazemi, head of the National Iranian Oil Refining and Distribution Company.

Under a deal reached with six major powers in July, Iran agreed to curb its nuclear programme in exchange for an end to economic sanctions imposed on the country in 2012 over the programme.

Kazemi said that Tehran was in talks to buy a stake in India’s Essar Oil, although India’s second-largest private refiner denied this.

“Essar has signed a non-binding term sheet with (Russian refiner) Rosneft for exclusive negotiations in relation to sale of Essar Oil shares and there is no other discussion in this regard,” an Essar spokesman said.

In July, Rosneft signed a preliminary deal to acquire up to 49 per cent of Essar.

India is Iran’s second-largest customer after China.

Iran’s oil production has fallen to 2.7 million barrels per day (bpd), down by one million bpd since the start of 2012, depriving Tehran of billions of dollars in revenue.

Kazemi said the National Iranian Oil Company (NIOC) was willing to invest in plants to refine Iran’s crude oil as that would be more economical for the country.

The Opec member aims to raise oil output by 500,000 bpd as soon as sanctions are lifted in early 2016 and by one million bpd from March.

Iranian officials have said Asian markets would be Iran’s priority for selling oil after sanctions are removed.

Asian imports of Iranian oil in September were down by nearly 6pc from a year earlier.

Published in Dawn, November 18th, 2015