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Financial Evaluation of Heavy Oil Refining by Hydrocracking Method in Iran
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Amirhossein Mohammadnia Joneid1   , Morteza Tahamipour *2 , Fazel Moridi Farimani1 |
1- Shahid Beheshti University
2- Shahid Beheshti University , m_tahami@sbu.ac.ir |
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Abstract: (21 Views) |
The oil industry plays a vital role in Iran’s economy, and its development is essential due to its direct impact on national revenues. Given the growing global demand for petroleum products and the increasing share of heavy crude oil in Iran’s reserves, refining this type of crude has become a strategic priority. In this context, the adoption of advanced technologies and the implementation of rigorous financial evaluations to identify the most effective solutions are imperative. This study focuses on the hydrocracking method for refining heavy crude oil into valuable light products. The financial feasibility of the project has been assessed using a cost-benefit analysis approach over a 20-year period across six different scenarios. The results indicate that the project is economically viable in four out of the six scenarios analyzed. In the most favorable scenario, the internal rate of return (IRR) reaches 37%, and the net present value (NPV) is estimated at USD 1.3 billion. The insights provided by this study can contribute to the development of hydrocracking technology for refining Iran’s heavy crude, creating added value for the country and enhancing social welfare. It is recommended that this method be considered for future implementation.
JEL Classification: D24, E42, L71, Q42.
Keywords: Oil Refinery, Financial Evaluation, Hydrocracking Method, Heavy Oil Refining.
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| Keywords: JEL Classification: D24, E42, L71, Q42.
Oil Refinery, Financial Evaluation, Hydrocracking Method, Heavy Oil Refining. |
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Full-Text [PDF 1364 kb]
(35 Downloads)
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Type of Study: Thesis(M.A.) |
Subject:
Energy Economic
Received: 2025/01/18 | Accepted: 2025/09/8 | Published: 2025/12/31 | ePublished: 2025/12/31
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