The construction of the Negin Lavan Petro-Refinning complex with a feed capacity of 150,000 barrels of crude oil per day (light and Heavy) was originally planned to be built on Lavan Island on a land area of 250 hectares, researcher, with an estimated investment volume of 5.3 billion and with a return on investment rate of 21 percent (currency) as one of the most attractive and lasting projects for domestic and foreign investors in the form of 7 projects.

Projects of the construction plan of the Negin Lavan Petro-Refinning refinery with the assumption of construction on the island of Lavan

 1) construction of refining units

 2) construction of petrochemical units

 3) construction of utility units and ancillary services

 4) construction of food and product storage tanks

 5) construction of docks and water heaters

 6) construction of a residential town (employee resort)

 7) construction of a gas pipeline

Moving the construction site from Lavan island to the Special conomic Zone of the energy industry on Persia

One of the most important factors in justifying the feasibility and profitability of designs is the subject of location and replacement of the design. Location of projects and projects in view of its important impact on :

1) providing food, shipping products and their finished costs

2) Estimated costs for the initial investment of the plan

3) economic indicators of the plan

4) the possibility of using the geographical locations of the region

5) security of the implementation of the plan

6) human resources and logistics of the project

7) improving the social level

And other factors that affect the cost of implementing the project, as well as the savings from the correct location of the project, are the most important issue and pillar in the feasibility of implementing a project. This can, in quantitative and qualitative calculations, make the implementation of the project possible and profitable in one place, or recommend the same project in another place, risky and not to build it. Therefore, due to the extraordinary importance of the project’s replacement and its impact on the amount of investment required, in the last days of 1402, the idea of moving the project site from Lavan island to the Special Economic Zone of the Energy Industries on the Persians was raised in the management team of the company and the necessary studies and reviews began in this regard.

Introduction of the Special Economic Zone of the Energy Industries on Persia

The Special Economic Zone of the energy industries of Persia is located 15 kilometers west of the city of Persia in Hormozgan province and covers an area of 9,800 hectares. The site is located 20 kilometers from the Persian Gulf International Airport(asluya), 43 kilometers from the port of Persia (asluya) and the connection center of the three provinces of Hormozgan, Persia and Bushehr. The region is one of the important development poles in the country, which, due to the economic, social, political, security, environmental, non-operational defense and geographical privileged conditions, has made it possible to deploy various energy industries in it with the aim of eliminating deprivation, balancing development and pursuing and deploying the country’s macro goals and benefiting from the geographical and policy advantages of the region. 

Advantages of relocating the project site to the Parsian Special Economic Zone for Energy Intensive IndustriesSignificant reduction in the initial fixed investment of the project by $1.3 billion

1) No need to construct a pier, a water intake and a large part of the utility production unit exclusively

2) Significant decrease in the initial investment due to the non-implementation of the gas pipeline required by the project

3) No need to construct a residential town for employees exclusively and reduce the investment resulting from it.

Savings from being in the mainland

1) Reducing and saving operational costs due to the elimination and changes in a number of projects

2) Reducing the required manpower

3) Reducing and saving operational costs

Social, welfare and health facilities in the mainland

1) Ease of transportation due to the access to the communication routes of three key provinces of the country (Hormozgan, Fars and Bushehr) and the proximity to Asalouye International Airport with multiple daily flights to all major cities of the country in comparison to Lavan Island which has no road access. communications and only has very limited flight and sea traffic.

2) Ease of access to resources needed during operation due to the proximity to companies that produce support goods and services such as sand, cement, asphalt, ice, food and health products.

3) The existence of a well-equipped healthcare network compared to Lavan Island 

Other major advantages resulting from moving the project to the special economic zone of energy industries on Parsian

1) Defense advantages

2) Environmental advantages

3) Safety advantages

4) Acquiring the land required for the construction of a refinery in Parsian region

5) The advantage of tax exemption

It is very clear that, according to the assignment, Negin Lavan Petrorefining Company has tried with appropriate measures and timely decisions not only to reduce risks and eliminate threats, but also to identify opportunities and carry out value engineering in line with value and More attractiveness of the project and reduction of the expenses, possible financial savings in such a way that the essence of the project does not undergo changes and also in order to have a stronger presence of investors and a stable and profitable future for its shareholders.On this basis and with reference to the above, it is expected that by moving the location of the project to the Special Economic Zone of Energy Industries in Parsian, the amount of initial fixed investment will decrease significantly by about one billion and thirty million dollars for the entire project (equivalent to 18/ 15% of the initial investment volume).