Tehran, Iran, June 16
By Mehdi Sepahvand - Trend:
Iran and China have come to terms on a joint venture to construct an oil terminal in Qeshm Island in the Persian Gulf.
The $550-million contract was signed by Iran's Machine Making Company and China's largest heavy industry enterprise, Fars news agency reported June 15.
After the completion of the first phase of the joint project, Qeshm Island will be able to store 10 million barrels of light, heavy and ultra-heavy crude oil produced in Iran's West Karun region.
The oil terminal will turn the island into a major center for oil production and storage. It will be large enough to handle tankers up to 140 meters deep and store an estimated 30 million barrels of oil.
In keeping with a 10-year lease contract, the terminal will generate annual revenue of up to $300 million.