Sinopec signs $1-bln Iran refinery deal

Iran

TEHRAN, January 2, 2018 – Sinopec has signed a long-anticipated deal under which it will invest USD 1.05 billion in the overhaul of Iran’s Abadan Refinery.

The contract signing, which follows an early-2017 USD 2.7-billion refining investment agreement between Iran and China, was reported on Saturday by Iranian local media.

Abadan is the oldest refinery in the Middle East. The facility was brought on line in 1912 and at its peak processed 650,000 bpd. It sustained heavy damage in the Iran-Iraq war and today is able to process 380,000 bpd. The government now aims to raise this figure to 540,000 bpd of higher-grade fuel through a revamp and expansion of facilities.

Sinopec’s role in the project is slated to include the construction of a 210,000-bpd unit for producing high-grade petrol. Its investment will be financed by Chinese export credit agency Sinosure.

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