SK Engineering & Construction (SK E&C) announced on August 6 that the company signed a basic contract for the "Tabriz Refinery Factory Modernization Project" ordered by Tabriz Oil Company, a subsidiary of Parsian Oil & Gas, Iran's largest private energy company on August 5 (local time). This project is valued at about US$ 1.6 billion and will modernize the aged oil refinery.
Tabriz Oil Refinery, which is 600 kilometers northwest of Teheran, the capital of Iran has a production capacity of 110,000 barrels per day. But the plant needs to be modernized in line with recently enforced environmental regulations.
Accordingly, SK E&C will modernize facilities to increase production of environmentally friendly high-value petroleum products such as gasoline, diesel, and lubricants that meet a new environmental standard (Euro 5).
SK E&C will carry out the project in the form of a packaged contract through which the contractor will be responsible for basic design, detailed design, procurement, construction and financing by establishing a consortium with ODCC, an Iranian EPC company.
Prior to this deal, SK E&C signed an MOU with the client to promote the modernization project of Tabriz Refinery Plant in June 2016 and completed a feasibility study in June. The construction will run for 36 months.
SK E&C said that the contract earned the builder a stepping-stone for a full-scale entry into Iran's construction market. Earlier, in March, SK E&C won the rights to operate the largest 5,000MW gas combined-cycle power plant which cost a total of 3.4 billion euros to build in Iran.