S. Korean Firm Wins Deal to Expand Iranian Oil Refinery
TEHRAN (Tasnim) – Daelim Industrial, a South Korean leading construction and petrochemical company, said it has won a multibillion-dollar contract to renovate and expand Isfahan Oil Refinery in central Iran.
The Korea Herald quoted the construction giant as saying on Thursday that the deal is worth $1.9 billion (2.3 trillion Korean won).
The company said it received a letter from Isfahan Oil Refinery to improve and expand oil refining facilities in the complex, located 400 kilometers south of capital Tehran.
Daelim Industrial will work on a series of projects in the refinery, from facility design to construction and financing, over a span of four years.
The Iranian refinery and the Korean company are going to sign a formal contract next month, the report added.
Daelim Industrial has been an active company in Iran’s construction business sector since South Korea established diplomatic relations with Iran in 1962. Starting with an engineering project for military use in May 1975, the company has carried out 26 construction projects worth about $4.6 billion in Iran over the past four decades.
“The latest order is the outcome of being recognized as a credible company by Iran’s state-run firms and private companies based on (Daelim’s) long experience in Iran,” a company’s official explained.
Many foreign companies have shown enthusiasm for investment in Iran since coming into force in January of the Joint Comprehensive Plan of Action (JCPOA), a lasting nuclear deal between Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany).