TEHRAN- Iran and South Korea signed a heads of agreement (HOA) based on which South Korean banks will finance a €1.6 billion project to upgrade Tabriz Oil Refinery in northwest of Iran, Shana reported.

The HOA was signed in Tehran on Saturday between Tabriz Refinery Company and a consortium consisting of Iran’s Oil Design and Construction Company (ODCC) and South Korea’s SK E&C (Engineering and Construction) Company.

South Korean banks including Korea Eximbank (Export–Import Bank of Korea) will finance the project which will be executed on an Engineering, Procurement, Construction and Financing (EPCF) basis.

Last year, Iran signed a deal with SK group to conduct feasibility study for the development of Tabriz Oil Refinery in order to increase the production capacity for gasoline and diesel fuel. It also envisages promotion of desulfurization facilities.

After the implementation of Iran’s nuclear deal (known as JCPOA) South Korean companies have signed several deals in Iran for implementing energy projects as the two countries seek to expand cooperation in the areas of trade and technology.

EF/MA