Iran rejected project for refinery optimization with China

Almaty. July 21. Silkroadnews – Iran signed a memorandum of understanding with South Korea’s Daelim to optimize oil refinery in Isfahan, Trend writes.

“Signing of this memorandum cancels the arrangements Iran achieved with Chinese investors who were to invest $2.5 billion into this project”, the report states.

According to the plant managing director Lotfali Chavoshi, refinery optimization in Isfahan will be implemented in 4 years with $2 billion investments. He also added, the South Korean Daelim will cooperate with Iranian contractors and the National Iranian Oil Engineering and Construction Company will act as an operator for the project.

As a result of refinery optimization its fuel oil production capacity is expected to grow by 10 million liters per day through the new technologies implementation.

Earlier, after long delays with financing, Iran cancelled a contract with China’s CNPC to develop “Yadavaran” oil field.

At the same time there is another contract valid between Iran and China, the point in case is about $1.3 billion project funding for the oil refinery in Abadan which implementation is also delayed.