South Korea’s SK Engineering & Construction Company will partner with Iran’s Tabriz Oil Refining Company to conduct $1.6 billion worth of renovations at the Tabriz facility, Reuters reports.
SK Engineering & Construction and Iran’s Oil Design Construction Company will fund and oversee the renovations.
The project is slated to take three years from its commencement and is projected to improve the refinery’s output, according to The Korea Herald.
At present, 20% of the refinery’s output consists of mazut. According to the Iranian Financial Tribune, the modernization project is to reduce this percentage to 2% within four years in favor of petroleum products with a higher value-added ratio.
The Iranian government is seeking to increase domestic refinement capability in order to stay abreast of Iranian domestic demand. Abbas Kazemi, Iran’s Deputy Oil Minister, noted that Iran has been importing “12 million liters of gasoline daily” for the past four months, reports the Financial Tribune.
The Tabriz Refinery is located in East Azarbaijan Province.