Jul 19, 2016, 10:50 PM

Iran, Korea sign oil deal

Iran, Korea sign oil deal

TEHRAN, Jul. 29 (MNA) – NIOC and South Korean Daelim Company have signed an MoU to improve production and optimize the facilities, Shana, official website of the oil ministry report said.

Managing Director of Isfahan Oil Refinery Lotfali Chavoshi told reporters on Monday that the implementation of the deal would bring the facility to its golden days; "the MoU is an Engineering, Procurement and Construction (EPC) contract with Daelim's financing. The plan will be carried out in a 4-year period with an investment of $2 billion. Daelim will cooperate with Iranian contractors and National Iranian Oil Engineering and Construction Company will serve as the operator," he added.

Once completed, the project will reduce the refinery's crude oil feedstock by 16,000 barrels per day, and its fuel oil output by 10 million liters per day by adopting new production technologies. The facility's oil output will rise by 8.5 million liters per day which will be one of the major achievements of the plan. 

Enhanced production of LPG by 2.1 million liters per day, promoted quality of products from Euro-2 to Euro-4 and 5 which would be environment-friendly, higher efficient in production activities, boosting revenues of the refinery, and reduction of emissions will be other benefits of the plan. 

Isfahan Refinery started operation in 1980 to produce LNG, gas oil, gasoline, and jet fuel with initial production capacity of 200,000 barrels per day.

SH/3718074

News ID 118216

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