An Iranian gas condensate refinery and oil processing plant in Malaysia are planned to be built to strengthen the cooperation between Iran and Malaysia.
An Iranian gas condensate refinery and oil processing plant in Malaysia are planned to be built to strengthen the cooperation between Iran and Malaysia. These plants are worth $7 billion, an official representative of the Iranian National Oil Engineering and Construction Company, Hamid Sharifrazi, said, Shana news agency reported.
According to Sharifrazi, it is planned to negotiate about acceleration of the Golshan and Ferdose fields' development, as well as about the construction of joint oil refineries. According to Sharifrazi, the construction of Iranian gas condensate refinery with a capacity of 120,000 barrels of oil in the Fars province and Oil Refinery Plant (ORP) with a capacity of 250, 000 barrels of crude oil in the Malaysian Kedah province was completed.
The amount required for the construction of a plant in Malaysia, is $4.8 billion. 30 percent of this amount will be subsidized by both parties. The rest of the budget allocated for the construction will fall to loans. It is planned to receive 100, 000 barrels of oil and 150, 000 barrels of Iranian oil after the plant is put into operation. Iranian-Malaysian SKS PARS Company was established during the work over this project.
The Malaysian company Petrofield will allocate 40 percent of investment for the construction of oil refinery in Iran. About ?800 million will be required for the construction of the plant.
According to Sharifrazi, the Malaysian Government gave Iran preferences, including tax exemption and duty-free import of the necessary equipment. The Iranian Government will also grant preferences to Malaysia. The capacity of the Pars oil refinery will be 12 million of petrol per day. Oil will be supplied from the Assalue to the oil refinery via pipeline. The company PDEC deals with designing of the Pars plant.