0239 GMT April 23, 2019
The South Koreans have undertaken to provide €1.9 billion for improving and optimizing facilities at Isfahan Oil Refinery, said Alireza Arman Moqadam of National Iranian Oil Refining and Distribution Company, according to Shana.
The deal to expand the refinery was awarded to South Korea's construction giant Daelim Industrial Company last December. The project, due for completion in 48 months, will augment facilities for producing high value-added products at the refinery.
The plant currently meet about 22 percent of Iran's demand for oil products with a capacity to process 375,000 barrels per day of oil.
Based on the deal, the South Korean company will be in charge of designing, equipping and procuring material, constructing and financing.
South Korea's Eximbank signed a contract with Iranian banks in August to provide €8 billion ($9.4 billion) in loans to finance projects in Iran by South Korean companies.
Earlier this month, Iranian and South Korean companies signed a contract worth €720 million to jointly build 450 rail carriages for use in suburban Tehran.
In August, South Korea's SK Engineering and Construction Co. (SKEC) signed heads of agreement for a €1.6-billion upgrade of the Tabriz refinery in northwest Iran.
Managing Director of National Iranian Oil Refining and Distribution Company Abbas Kazemi said at the time that Iran needed $14 billion in investment to fix and upgrade Tehran, Bandar Abbas, Isfahan, Tabriz and Abadan refineries.
Kazemi said Iran expected to sign oil refining contracts worth $8.6 billion with a number of Japanese, Chinese and Korean companies.
On Wednesday, China's Sinopec Engineering (Group) Co. said it had entered into an engineering, procurement and construction contract with National Iranian Oil Engineering and Construction Company to upgrade phase 2 of Abadan Oil Refinery.
"The group will pursue approximately 6.86 billion yuan ($1.05 billion) of the total contract value," it said.