Iran says it is negotiating with companies from Japan to upgrade two key refineries – a move that could further expand the country’s abilities to produce gasoline.
Managing Director of National Iranian Oil Refining and Distribution Company (NIORDC) Abbas Kazemi was quoted by the domestic media as saying that the companies were JGC Corporation and the Japan Cooperation Center, Petroleum (JCCP).
Kazemi added that they would be involved in the upgrading of Tehran and Bandar Abbas refineries in the near future.
"Upon implementation of the Joint Comprehensive Plan of Action (JCPOA), foreign investors, South Korea and Japan, voiced extreme eagerness to enhance old Iranian refinery complexes, which is a necessity indeed," Kazemi told Mehr News Agency.
“All old refineries require a total of approximately 14 billion dollars for them to produce Euro-4 products and decrease fuel oil output to less than 10 per cent,” he was quoted as saying in a report that was also carried by Russia’s Sputnik news agency.
The official further added that Iran also plans to proceed to upgrade refineries in Isfahan, Tabriz and Abadan.
This past December, South Korea’s construction giant Daelim Industrial Company announced that it had won a major deal from Iran to expand a central oil refinery.
Daelim announced in a statement as quoted by the media in Seoul that the project involved improving and optimizing facilities at Isfahan Oil Refinery.
It added that the value of the deal is $1.9 billion.
The value of the deal makes up about 24 percent of the company’s sales last year, reported The Korean Herald. It is among the biggest Iran has awarded a Korean builder after the removal of the sanctions in January, Daelim added.