Baku, Azerbaijan, June 5
By Fatih Karimov - Trend:
A South Korean company will renovate Iran's Tabriz refinery, located in northwest of the country.
The South Korea's SK Engineering & Construction Co. has signed a contract with Iran's Parsian Oil & Gas Development Group Co. (POGD) to launch a feasibility study for a $20 million modernization project, SHANA news agency reported June 5.
The POGD owns a 50 percent share in Tabriz refinery operating for 40 years. According to the non-binding agreement, the SK will review business prospects on the project of renovation of the refinery at the first stage which will take about six months.
The work includes upgrading of desulphurization equipment and other gasoline manufacturing facilities.
The South Korean company is hopeful that the renovation project could pave the path to $200-300 million worth of cooperation with Iran.
Iran's deputy oil minister, Abbas Kazemi, earlier said that the Islamic Republic is negotiating with the South Korean companies for renovation of Isfahan and Abadan refineries.
Kazemi, who heads the National Iranian Oil Refining and Distribution Company (NIORDC), said that general agreement on the issue has been reached with the South Korean companies. He did not disclose the names of the companies.
Only one of Iran's nine active refineries enjoys acceptable profitability and other refineries should improve their performance. The refineries refine 1.8 million barrels of crude oil in total on a daily basis.
Iran ranks 9th in the world in terms of gasoline production and 13th in gas oil output, meanwhile it is the world's third major mazut producer, which indicates low performance of the country's refineries.