South Korea’s SK Engineering & Construction has signed a heads of agreement with the Tabriz Oil Refining subsidiary of Iranian state refiner NIORDC and state construction firm NIOECC for a €1.6bn ($1.89bn) upgrade of the 110,000 b/d capacity Tabriz oil refinery.

The agreement follows SK’s June 2016 signing of an MoU with NIORDC for a feasibility study into options for increasing gasoil and gasoline output from Tabriz at the expense of fuel oil. In Iranian calendar year 2015-16 gasoil and gasoline were the Tabriz refinery’s main products, comprising a combined 68.3% of total output. Fuel oil was the third largest contributor in volume terms, representing almost one quarter of the total (see table). (CONTINUED - 711 WORDS)