Tehran has finalized an agreement worth $2 billion (2.3 trillion won) with South Korea's Daelim Corporation to renovate and expand a refinery in Isfahan Province, head of the National Iranian Oil Refining and Distribution Company, Abbas Kazemi, said on Friday.
“The official and final agreement for improvement and optimization of Isfahan Oil Refinery has been signed with Daelim Corporation, the leading company in the Korean petrochemical sector," Kazemi said, Mehr News Agency reported.
Daelim lifted the veil on the agreement last week, saying in a statement that it had received a letter of award (LoA) from Isfahan Oil Refining Company to develop and expand the huge complex.
The NIORDC official said the deal is mainly aimed at reducing fuel oil production and boosting output of higher-value products such as gasoline.
NIORDC is also holding talks with two high-profile Japanese companies for projects to curtail mazut production at Tehran and Bandar Abbas refineries, Kazemi said, reiterating that final agreements would be signed soon.
Established in 1939, Daelim is one of the largest companies in South Korea. The fields covered by Daelim, as one of the top engineering, procurement and construction companies in Asia, include gas, petroleum refining, chemical and petrochemical, power and energy plants, building and housing, civil works and industrial facilities.