Iran Taps China For $1.5bn Refinery Upgrade, Warns Over Lack Of Upstream Progress

China this week signed up to revamp Iran’s largest refinery. Upstream awards are likely too, if Chinese contractors can “pull themselves together.”

Iran’s Oil Ministry has signed a number of MoUs with China’s National Energy Administration, including for renovation of its largest refinery, the 400,000 b/d capacity Abadan plant. Oil Minister Bijan Zanganeh, speaking at the 15 May signing during a visit of Chinese officials to Tehran, pegged the expected cost of the Abadan upgrade at €1.5bn ($1.7bn) for which financing would be procured by Chinese banks.

Chinese firms are considering investing in a number of Iranian petrochemicals projects, according to Marziyeh Riahi, director of the ministry’s Asian international affairs and trading office. She told the ministry’s Shana website that the deals envisage Chinese contractors building plants across Iran’s oil and gas, refining and petrochemical industries. (CONTINUED - 838 WORDS)

DATA INSIDE THIS ARTICLE

table Iran Refining Capacity (‘000 B/D)