Iran: $19bn Korean Deals Threatened As Daelim Pulls Plug Over Funding Woes

Daelim has canceled a $2bn deal to upgrade Isfahan refinery, while Hyundai is weighing the options on its $3bn Siraf splitters deal. China could capitalize.

Korean construction firm Daelim Industrial has announced the cancellation of a $1.9bn contract for an upgrade of Iran’s 375,000 b/d Isfahan refinery.

The agreement was canceled “after fund-raising was not completed because of worsening external conditions, including economic sanctions on Iran,” Korea’s Yonhap news agency reported, citing a report to Korea’s Financial Supervisory Service.

The recent decision by US President Donald Trump to exit the Joint Comprehensive Plan of Action (JPCOA) that lifted international sanctions against Iran has forced potential investors and oil buyers to rethink their plans.

Daelim evidently saw the writing on the wall, given that it had failed to raise funding – a prerequisite for the deal to be completed – in the near-year between its original signing of the deal at the start of 2017 and Trump entering office ( MEES, 13 January 2017 ). (CONTINUED - 892 WORDS)

DATA INSIDE THIS ARTICLE

table Iran's Post-Sanctions Preliminary Korean Downstream Deals