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