A South Korean-Japanese consortium has signed a preliminary agreement
worth $3 billion to develop Siraf Refining Park, a major downstream
project in the city of Siraf in the southern Bushehr Province.
The agreement was signed between executives of Siraf Refining Park and
South Korea’s Hyundai and Daelim Corporation as well as Japan’s Chiyoda
Corporation at Daelim’s headquarters in Seoul on Thursday, IRNA
It entails the funding and construction of eight new petroleum
processing facilities in Siraf by the East Asian consortium. The signing
ceremony was overseen by Hassan Taherian, Iran's ambassador to South
A total of $2 billion will be provided by the Export Import Bank of
Korea (KEXIM) and the Korea Trade Insurance Corporation (K-Sure). The
remaining $1 billion would be extended by Japanese financial
institutions, including Nippon Export and Investment Insurance.
The four-year project will increase Iran’s refining capacity, currently
standing at around 1.8 million barrels per day by 22% and raise its
petrochemical feedstock output by 57%.
In January, Tehran finalized an agreement worth $2 billion (2.3 trillion
won) with Daelim to renovate and expand Isfahan Oil Refinery, Mehr News
Agency reported. Established in 1939, Daelim is one of the largest
companies in South Korea.
State-owned National Iranian Oil Refining and Distribution Company also
signed a memorandum of understanding with South Korean engineering
conglomerate SK Group last year on conducting feasibility studies on
Tabriz Refinery’s development plan. Based on the MoU, the refinery's
mazut output will be significantly cut in favor of higher gasoline and
Aiming at reconditioning Abadan Oil Refinery in the southern Khuzestan
Province, Iran has signed an agreement worth $1.3 billion with China
Petroleum and Chemical Corporation. The refinery, which was once one of
the world's largest, was heavily damaged during the 1980-88 Iraq-imposed