China, S. Korea to invest in Iran’s $1.5b oil project

TEHRAN,Sept.10(MNA) - Chinese oil company, Sinopec, and a South Korean company have finalized a deal with Iran to invest in a project, worth $1.5 billion, to revamp Iran’s Esfahan Oil Refinery. The name of the South Korean company has not been revealed. The project is aimed to boost the refinery’s gasoline and diesel fuel production capacity. The foreign companies have been also negotiating with Iran for launching other similar project in Abadan Refinery. In April, the Mehr News Agency quoted Managing Director of National Iranian Oil Engineering and Construction Company, Farhad Ahmadi, as saying that Chinese financers will participate in Iran’s Abadan Refinery development project. The project is estimated to cost $2.6 billion, he said, adding that 85 percent of the fund will be secured by the Chinese side. The financing contract will be signed in the near future, he added. According to official government data, Iranian gasoline imports have slumped by as much as 95 percent over the last four years as rising refinery capacity and lowering fuel subsidies help neutralize Western sanctions aimed at starving Tehran of fuel. Four refinery projects are underway in Iran which will double the country's gasoline production capacity to 144 million liters.