Hamidreza Mahjoub outlined the refinery’s performance in the Iranian year 1404, citing significant progress in mazut quality improvement projects, implementation of development plans in line with Article 45 of the Seventh Development Plan, and increased production capacity. He said Lavan Refinery has consistently operated as a project-driven complex, with development initiatives and product quality upgrades as top priorities.

Mahjoub said that under the latest mandate assigned to refineries pursuant to Article 45, facilities are required to store 40% of their annual fuel output and execute development and quality enhancement projects. In response, Lavan Refinery has launched two strategic mazut upgrading projects.

Two projects target mazut quality

Mahjoub said the refinery had previously completed gasoline and diesel quality improvement projects and is now focused on mazut. The first project involves construction of a delayed vacuum unit, which will convert mazut into diesel and light and heavy vacuum cuts, with the remaining residue processed into bitumen.

He added that part of the remaining mazut will be treated under the second project — a mazut sweetening unit — to produce mazut with sulfur content below 0.5%. Mahjoub said low-sulfur mazut is particularly important for supplying bunker fuel to ships in the Persian Gulf, noting that Lavan is the only Iranian refinery located on an island with the capability to supply bunkering fuel directly.

Mahjoub said the initiative will not only meet the needs of the marine fleet but also help reduce pollution from high-sulfur mazut consumption at power plants, especially during colder months, calling the environmental benefits “highly significant.” He said the delayed vacuum unit project has reached 58% completion, while the mazut sweetening project, launched later, is about 10% complete.

Euro 4 gasoline and diesel production

Mahjoub said the refinery’s processing capacity stands at 55,000 barrels per day, consisting of roughly 60% crude oil and 40% gas condensate. He said gas condensate from South Pars is transported to Lavan by tanker because the refinery lacks a pipeline connection.

He added that the refinery’s main products are shipped directly by sea to distribution hubs in Bushehr, Mahshahr and Chabahar.

Mahjoub said gasoline accounts for about 34% of total refinery output, with daily production reaching approximately 3 million liters. Diesel production stands at about 2.45 million liters per day. He said all gasoline and diesel produced at Lavan Refinery meet Euro 4 standards.

Overhauls maintain production stability

Mahjoub said scheduled overhauls are conducted in a targeted manner to preserve production stability. He said the overhaul of Gasoline Unit No. 1 was completed over the past month, with refinery staff finishing the operation in 26 days — two days ahead of schedule — relying on domestic expertise.

Mahjoub described the refinery’s project-oriented strategy as its most important achievement in recent years. He said the site has expanded from 3 hectares at inception to more than 200 hectares today, while capacity has increased from 20,000 barrels per day to 55,000 barrels per day.

He said the facility has evolved from a basic distillation unit into a semi-complex refinery. Mahjoub added that after a period of losses following privatization, the refinery is now transitioning into a profitable operation that creates value for shareholders.