Iran is considering building an oil refinery in Algeciras on the Spanish coast, according to the Foreign Minister Jose Manuel Garcia-Margallo.
"Iran is studying the possibility of setting up a refinery in Spain, specifically in Algeciras," on the south coast, Garcia-Margallo said on Monday.
The original intent was for the Russian oil giant Rosneft to build a refinery. Spain was “on the verge of reaching agreement with Rosneft” but when EU sanctions were slapped on Russia over the crisis in the Ukraine, negotiations came to an end, according to the minister.
"But Iranian investment can fill the void" to create jobs, he said.
With the lifting of sanctions against Iran last Saturday, Iran announced its intention to increase its oil exports. Currently it exports one million barrels each day, and plans to double that within six months.
But it recognises the need to find new markets for its oil. European countries stopped buying from Iran when the EU sanctions over its nuclear programme were enforced in 2012.
China, India, South Korea and Japan became the main purchasers of Iranian oil, but it appears that Iran wants to court the European market again.
Garcia-Margallo said Spain offered very big opportunities and that the country “must practically rebuild the whole energy apparatus”.
