Asian Oil Giants Discuss Refinery Projects

Asian Oil Giants Discuss Refinery Projects
Asian Oil Giants Discuss Refinery Projects

Iran has started negotiations with the South Korean company Daelim and the Japanese corporation Chiyoda for implementing new projects in Iran's refineries, a deputy oil minister announced.

"We have held talks with many international oil companies, including Daelim and Chiyoda, on taking over projects aimed at decreasing mazut production capacity in refineries and we have reached preliminary agreements," Abbas Kazemi also told Mehr News Agency.

Established in 1939, Daelim Group is one of the largest companies in South Korea. The fields covered by Daelim, as one of the top engineering, procurement and construction companies in Asia, include gas, petroleum refining, chemical and petrochemical, power and energy plants, building and housing, civil works and industrial facilities.

Chiyoda Corporation is a large Japanese engineering company specialized in industrial facilities, particularly oil refineries and LNG facilities. Most of its business takes place outside Japan, normally in the Middle East.

"By March 19, the first phase of the Persian Gulf Star Refinery will become operational," Kazemi added.

"Currently, the infrastructure for establishing utility units and some of the processing sections is being installed."

The official noted that as per the timetable, distillation units of the refinery will go on stream within two months and its gasoline complex is expected to be completed in a year.

Kazemi stressed that once the refinery's gasoline complex becomes operational, more volumes of Euro-4 gasoline will be distributed in Iranian metropolises.

"With the removal of international sanctions against Iran's petroleum industry, the Persian Gulf Star Refinery's implementation pace is expected to gain momentum," he said.    

The official said pipelines to the most populated cities are being expanded, along with the construction of the refinery, adding that the Nain-Tehran oil pipeline has made 80% progress.

Kazemi, who is also the managing director of National Iranian Oil Refining and Distribution Company, introduced lowering mazut production of refineries as the most important oil refining plan of the country.  "At present, the average mazut production of Iranian refineries is about 26%, which is not economically viable," he said.