TEHRAN, Sep. 10 (MNA) – Deputy oil minister has announced the final agreement between Iran and China’s Sinopec for development of Abadan Refinery.
Touching upon the latest Iran-China oil deal, Managing Director of National Iranian Oil Refining and Distribution Company (NIORDC) Abbas Kazemi said “final agreement has been reached with Sinopec (China Petroleum & Chemical Corporation) to implement the first developmental phase of Abadan Refinery as the country’s largest refinery complex.
The official, while announcing that the new deal was reached with a subsidiary of Sinopec, said the project follows several objectives including reduction of fuel oil production, increasing production capacity for gasoline and diesel with Euro-IV standard.
Kazemi pointed to the need for a 1.2-billion-dollar investment in the first development phase of Abadan Refinery renovation.
“The last round of negotiations with the Chinese side revolved around reopening of credit lines for the refinery project,” noted NIORDC head estimating that the Chinese will begin executive operations by December.
He went on to add that the project will require about four years of time reiterating “reduction of fuel oil to less than 10 per cent marks the most important aim pursued in the developmental project of the massive Iranian refinery.”
Recently, a Chinese financer was removed from development project of Isfahan Refinery and a relevant deal was inked with Daelim of South Korea to replace the Chinese side. Accordingly, the Chinese have gained the upper hand in talks over development of Abadan Refinery.
Almost a year ago, Abbas Kazemi announced the issuance of an ultimatum to a Chinese company on the developmental contract of Abadan Refinery.
NIORDC managing director said due to considerable stalling for time on the part of the Chinese firm, they have received a tough ultimatum; “the Chinese side has been warned that a substitute contractor would be hired if they use any more delaying tactics.”
The capacity consolidation project in the 100-year-old Abadan Oil Refinery aims to produce products under Euro 5 standard, reduce environmental pollution, increase production of gasoline by improving production technology, reduce fuel oil production in addition to collecting obsolete tanks and installations.
By Mehr News Agency