With the declared aim of improving the quality of oil byproducts by upgrading production in refineries, Iran is due to finalize contracts worth $6.6 billion with Southeast Asian oil giants including China and South Korea, managing director of National Iranian Oil Refining and Distribution Company said on Wednesday.
“Enhancing the quality of processed crude, reducing mazut output and raising production capacity of gasoline and diesel compliant with Euro-5 standards tops our priority list," Abbas Kazemi was quoted as saying by Mehr News Agency.
Regarding negotiations between National Iranian Oil Company and China Petroleum and Chemical Corporation (Sinopec), he said the final agreement is expected to be signed in Tehran soon in the presence of Wang Yupu, the chairman of Sinopec Group.
"The first phase of the project, worth $1.2 billion, will be financed by China's Sinosure, which has already opened a credit line to that effect," Kazemi said, noting that the funding is part of a $3-billion deal to develop Iran's Abadan Oil Refinery, which now is a century old, in two phases over four years.
"The venture is expected to be completed in four years, with mazut output to be reduced to less than 20% from the present 40%," he added.
According to Kazemi, current oil byproducts exports capacity namely diesel and liquefied natural gas stands at 500,000 barrels per day.
Asked about an agreement worth $3.3 billion with South Korea's Daelim Corporation to renovate and expand a refinery in Isfahan, he said the final agreement for improvement and optimization of Isfahan Oil Refinery has been signed.
On talks with other Asian firms to reduce fuel oil production and boost output of high-value products such as gasoline, Kazemi said, "NIORDC is in talks with two high-profile Japanese companies, Mitsubishi and Marubeni, for projects to curtail mazut production at Tehran and Bandar Abbas refineries."
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