Japanese Firm to Repair Bandar Abbas Refinery

Japanese Firm to Repair Bandar Abbas RefineryJapanese Firm to Repair Bandar Abbas Refinery

A Japanese engineering firm is expected to soon sign a contract with the Iranian government for oil refinery repair work.

In an exclusive interview with NHK, sources close to the deal say Chiyoda Corporation has reached a preliminary agreement with Tehran for major repair work in Bandar Abbas in the country's south.

That will be the first infrastructure-related contract for a Japanese firm since the international sanctions for Iran's nuclear program were lifted last month. The project is expected to be worth around $2.5 billion. The sources say the work will start next year or later after Chiyoda formally signs the contract.

International firms are competing for new opportunities in Iran, one of the major oil producers. With a population of 80 million, the country is one of the largest markets in the Middle East. German automaker Daimler clinched a basic deal for local production of trucks two days after the sanctions were lifted. European aircraft maker Airbus concluded a contract late last month to sell 118 passenger planes to an Iranian airline.

Other Japanese businesses are expected to follow Chiyoda in making inroads into the Iranian market.