Korean Firms Dominate Iran Refining Deals As Daelim Bags Isfahan

Korea’s growing role in Iran’s post-sanctions downstream has taken another big step with the award of a $1.91bn contract to Daelim by state refiner NIORDC for an upgrade of Iran’s second largest refinery.

NIORDC chief Abbas Kazemi says the project will boost output of light products and cut fuel oil at the 375,000 b/d Isfahan plant. Korea will provide the bulk of the financing for the project, he adds.

This will presumably come under the auspices of a funding deal worth up to $15bn for “oil, gas and infrastructure projects” Iran’s central bank agreed with the state Export-Import Bank of Korea (Kexim) during Korean President Park Geun-Hye’s visit to Tehran in May ( MEES, 13 May 2016 ). Ms Park is currently the subject of impeachment. But Korea’s large and growing reliance on Iranian crude means the two countries’ oil ties will not be threatened by any change of government. (CONTINUED - 862 WORDS)

DATA INSIDE THIS ARTICLE

table 1: Isfahan Refinery 2015-16* Output
table 2: Iran'S Post-Sanctions Preliminary Refining Deals
chart Isfahan Refinery Post-Upgrade Capacity Changes (‘000 B/D)