TEHRAN – China’s Sinopec and Iran’s Oil Ministry have finalized an agreement regarding the development project of Iran’s Abadan refinery, Mehr news agency reported on Saturday.

Based on the report, according to Iranian Deputy Oil Minister for Refining and Distribution of Oil Products Abbas Kazemi, the first phase of the $1.2 billion project will start in the near future.

“The project includes the development, optimization and improvement of production processes in Abadan refinery as the largest oil refinery in Iran,” Kazemi told Mehr.

Deputy oil minister noted that based on this agreement one of the Sinopec’s subsidiaries will be responsible for the implementation of the first phase. “Reducing fuel oil production to less than 10 percent and increasing production capacity for gasoline and diesel based on Euro4 standard are among the most important goals of the project,” he said.

Elsewhere in his remarks, Kazemi mentioned that the talks for opening a credit line for this project are underway with China’s central bank and noted, “It is anticipated that the Chinese company will start the project in the Iranian ninth month of Azar (November 21-Decemebr 20).”

Iran is aiming to increase export volumes of cleaner diesel in upcoming years as its refineries are being upgraded.

EF/MA