Iran, China likely ink a $5bln oil contract

Oil&Gas Materials 26 September 2011 17:44

Azerbaijan , Baku, Sept. 26/Trend D. Khatinoglu/

Iran and China are in talks on construction of an oil refinery and repairing Abadan refinery worth $5 billion, Mehr News Agency reported.

The two sides are discussing possibilities of constructing of a new refinery in Kermanshah city and repairing, modernization and optimizing of Abadan refinery.

The construction expenses of Kermanshah's Anahita refinery are expected to cost about $2.7 billion and repairing Abadan refinery may take $3 to $3.5.

Earlier, Mehr news Agency reported that Iran and China have delayed contracts worth $40 billion.

Iran and China's bilateral trade turnover reached $30 billion in 2010 and is expected to increase by 50 percent to $45 billion in 2011.

Abadan refinery is Iran's biggest oil refinery.

Iran is eager to launch Anahita refinery with a refining capacity of 150,000 barrels of oil, 7 million liters of gasoline, 9 million liters of diesel, 5.3 million liters of kerosene, 600,000 liters of LNG and 2 million litters of furnace oil.