The country’s oil refining commenced when Abadan Refinery came on stream in 1912. The refinery started work with a daily refining capacity of 2000 barrels of crude oil. The figure gradually increased and set a record in the world’s oil refining industry with a nominal capacity of 550 thousand barrels of crude oil per day in 1979.

Abadan Refinery’s real oil refining capacity before the 1979 Islamic Revolution stood at 650 thousand barrels per day (bpd) and it was regarded the largest crude oil refinery in the world. The refinery applied high technology and had a fluid catalytic cracking (FCC) unit which scores of today’s refineries in the country lack. The refinery had the capacity to produce quality gasoline and up to 60 percent of crude oil feed.

The variety of oil products in Abadan Refinery at the initial stage of its production in 1912 met domestic market’s needs at that time, ranging from kerosene, gas oil, and mazut.

In tandem with economic growth and industrial development in the country, the refinery’s variety grew and it produced 134 types of oil products daily at the climax of its activity. Dozens types of gasoline, tar, solvents, engine oil, and several types of gas oil, kerosene, and jet fuel were the main products ordered by foreign countries and which were not used inside the country.

Following the Iraqi imposed war against Iran (1980-88), the world’s largest oil refinery and the heart of Iran’s refining industry in Abadan was the target of the enemy attacks, leading to destruction of a major part of its installations.

After the eight-year war, the refinery was not fully reconstructed and renovated. Worn-out systems and equipment and the transformation of about half of crude oil the refinery received to furnace oil prompted the restoration of its installations and increase of its capacity.

The first phase of the reconstruction project was implemented in summer 2005, helping increase the atmospheric distillation unit’s capacity to 180 thousand bpd from 130 thousand bpd.

The project also helped the atmospheric distillation unit decrease its furnace oil production from 45 percent to 37 percent, transform 18 percent of crude oil to gasoline, 40 percent to gas oil and kerosene, and five percent to gas liquid.

After the atmospheric distillation unit’s capacity got a 50 thousand bpd (7.95 million liters daily) boost, the refinery has been producing some 1.5 million liters of gasoline, about 180 thousand liters of gas liquids, 809,787 liters of kerosene, and 1.64 million liters of gas oil daily.

Following the implementation of the project, the refinery’s furnace oil production has been cut, amounting to 2 million and 829,723 thousand liters a day. The project also paved the way for producing 2 million and 600,286 thousand liters of raw material of engine oil and 2 million and 27,335 thousand liters of the FCC unit’s feed per day.

The project enjoyed special features as it was implemented by domestic experts and concurrent with the routine operations of the refinery.

Contractors National Petrochemical Co. (NPC) and Design, Installation and Construction Co. signed an engineering, procurement and construction (EPC) contract and jointly executed the different phases of the project including study of infrastructure sketch, detailed design, logistical issues, as well as installation and construction.

The project was carried out within 34 months and 30 percent of the required equipment was supplied by domestic manufacturers and 70 percent for foreign companies.

Totally 46 million dollars and 280 billion rials were invested on the implementation of the project.

To implement the plan on renovation of Abadan refinery and increase of its capacity, new units including atmospheric distillation unit, vacuum distillation unit with a daily 70 thousand bpd, granole unit with a daily capacity of 25 thousand bpd, warm water cooling tower, sour water treatment plant, sour gas flare unit, and fire hose system.

Abadan Refinery is currently meeting 26 percent of Iran’s need in oil products.