An Iranian company together with a Chinese one are moving ahead with the development of Abadan Oil Refinery, Iran's oldest crude processing facility in oil-rich Khuzestan Province, said the managing director of the refinery, Financial Triubune reports.
“China's Sinopec Engineering Company and Oil Design and Construction Company from Iran are involved in developing the second phase of the refinery, which includes a new crude distillation plant to replace three old units that were built 70 years ago,” Iran Petronet news website quoted Ali Akbar Mirqaderi as saying.
The rehab project is aimed at enhancing the quality of products and improving their compliance with international standards.
"Although Oil Design and Construction Company is responsible for the refinery’s development, we can clearly witness active construction,” he added, denying reports that all Chinese companies are leaving or have already left Iran due to the renewed US sanctions on the country.
It’s expected that cooperation between Iranian and Chinese companies improve the quality of petrol and gas products and upgrade it to Euro 5, the criteria for light passenger and commercial vehicles on the European emissions standards approved in 2009.
Iran said China National Petroleum Corporation (CNPC) took over the French Total to develop South Pars gas field, the largest natural gas reserve in the Persian Gulf shared by Iran and Qatar.
However, Reuters reported on 12 December the state-controlled Chinese company has suspended investment in the project. It quoted three Chinese state oil executives as saying.
As the head of Iran’s oldest refinery says, one Chinese firm is still involved in Iran’s oil production. Mirghaderi says the Abadan facility will also develop phase 4 to improve the oil products quality.