File photo shows an Iranian oil refinery in Lavan, Persian Gulf.
Iran's Deputy Oil Minister Alireza Zeighami says the ministry has revoked a contract with the Malaysian SKS Company for the implementation of the Shiraz Pars Refinery project.
Zeighami said on Friday that the annulment has been due to the firm’s repeated delays and failure to start the construction and financing of the project, adding that Iranian contractors will now take over the construction of the refinery.
Zeighami, who is the managing director of the National Iranian Oil Refining and Distribution Company, added that some USD 1.3 billion will be invested in Shiraz Pars Refinery project by government and private sector.
“While some of the equipment needed for the project might be imported from abroad, the management, designing, construction, and commissioning of the refinery’s units will be entirely carried out by Iranian contractors,” he stressed.
Zeighami said SKS held 40 percent of the refinery’s stocks, adding that it had signed a contract with Iran to develop the project five years ago.
Shiraz Pars Refinery will be the first national condensate refinery in Iran.
Upon inauguration, it will have a daily capacity to refine 120,000 barrels of condensate and produce a daily amount of 12 million liters of gasoline conforming to Euro-5 standard.
A 430-kilometer pipeline will carry the unit’s feedstock from Asalouyeh in Bushehr Province to the refinery.