24-08-08 Iran plans to start construction of four 1-mm oil storage tanks in Kharg Island in a bid to double its oil reserve capacity. The managing director of Oil Terminals Company, a subsidiary of the state-run National Iranian Oil Company, says the new storage capacity is necessary to store seasonal offshore oil into onshore storage facilities.
"Construction of the tanks will enable the country to raise its storage capacity by 50 %," says Mousa Souri.

This is part of the long term energy strategy policy of the country to increase its oil reserves as current level of stored crude oil in tankers are considered to be at their 5-years low, Souri added.
Construction of the storage tanks is expected to take 18-24 months and whether international contractors will be used is not clear at this time.

Kharg Island is located in the north-eastern Persian Gulf, 16 miles (25 km) off the coast of Iran and 300 miles (483 km) north of the Strait of Hormuz.