Iran proposes construction of oil refinery in Algeciras, Spain

Iran is reportedly planning to construct an oil refinery in the Spanish port city of Algeciras, a day after the US and European Union lifted international nuclear sanctions against the country.

Spanish foreign minister Jose Manuel Garcia-Margallo said that the proposed refinery would be constructed in the southern port city of Algeciras with local Spanish firms.

The sanctions were lifted in return for Tehran complying with an agreement to curb its nuclear programmes.

Under the US-led agreement, most of the sanctions that are nuclear-related will be removed and will allow Iran to export oil from the country.

International Atomic Energy Agency (IAEA) director general Yukiya Amano said in a statement: "We have come a long way since the IAEA first started considering the Iran nuclear issue in 2003.

"A lot of work has gone into getting us here, and implementation of this agreement will require a similar effort. For our part, we are ready to get on with the job."

Details of Spanish firms that would be involved in the refinery project are yet to be disclosed.

Iran Deputy Oil Minister Abbas Kazemi said in November 2015 that the country will focus on purchasing or investing abroad to increase its oil output, once the sanctions are lifted.

Following this development, Iran is expected to increase oil output by 500,000 barrels a day.

Reuters quoted Margallo saying: "Our political relationship with Iran is very good because we moved faster than other countries and are now very well placed for future business."

The construction of the new refinery is expected to boost employment in Algeciras.

The European Commission, which has been planning natural-gas imports from Iran, is set to send a first assessment mission to the country in February 2016. The commission is eyeing gas imports from Iran in a bid to cut its dependency on Russian energy.