Iran, China sign €2.17b refinery contract

July 31, 2006
TEHRAN -- The National Iranian Oil Refining and Distribution Company (NIORDC) handed over Sunday the project for increasing the capacity of Shazand Refinery of Arak, Markazi Province, to a consortium of China’s Sinopec and the National Iranian Oil Company (NIOC).

This will give boost to the refinery’s capacity from 150,000 barrels per day to 250,000 bpd.

The €2.17 billion contract is the largest engineering project to be implemented by Iran and China, the Chinese ambassador to Tehran L. G. Tan said after the signing ceremony.

China’s Sinopec which has grown to be one of Iran’s best partners is also expected to increase the refinery’s production rate of gasoline from 70,000 bpd to 100,000 bpd.

The contract was signed in the form of EPC (engineering, procurement and construction). The first phase of the project will take 39 months to complete.