Tehran, Nov. 25,09 (Hamsayeh.Net) - China’s biggest oil refiner has signed a memorandum of understanding with the National Iranian Oil Refining and Distribution Company (NIOPDC) for a joint venture on the expansion of oil refineries in Iran.
The deal between Sinopec and NIOPDC expected to be finalized within the next two month. According to a report by Mehr news agency, technical experts from both companies are studying the draft agreement and figuring out ways for its implementation.
Iran plans to boost the domestic refining capacity by 1.56 million barrels a day at an estimated cost of $23 billion. The envisioned plan would double the country’s refining capacity to 3.2 million bpd by building seven additional refineries.
Sinopec Co. has been very active in Iran since several years. Sinopec Group, the state-owned parent of Sinopec Corp., agreed in October 2004 to develop the Iranian oilfield and to buy 10 million metric tons of liquefied natural gas every year for 25 years in a deal worth as much as $100 billion.
The Chinese company agreed to import 150,000-160,000 bpd of Iranian crude this year, same as last year.
Iran is world’s largest holder of hydrocarbon reserves with all its oil and gas resources combined. The country offers enormous potential for expansion and development of energy resources in the future.
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