Iranian, South Korean companies sign €3b petrochemical deal
12 Mar 2017 - Iran's Ahdaf Investment Company and South Korea's Hyundai Engineering Company signed an agreement worth three billion euros to construct part of a petrochemical project in Iran.
Iran's Ahdaf Investment Company — a subsidiary of the Oil Pension Fund Investment Company — signed the deal on Sunday which covers the construction of the second phase of the Kangan Petro Refining Company, according to Shana.
"The financing of this project will be finalized within nine months at the rate of 95 percent ... by South Korean banks," said Managing Director of Ahdaf Investment Company Asghar Arefi, who signed the accord.
Arefi said the first phase of the Kangan project was 30 percent completed with an investment of nearly 120 million euros.
He said it will be one of the most lucrative projects in Iran.
Phase II of the project includes four plants for production of olefins, LLD, HD and MEG, the construction of which will take 48 months.
Investments in Iran’s oil and petrochemical projects have always been a lucrative business for international firms.
The removal of anti-Iran sanctions has pushed a large number of these companies to explore avenues to clinch deals with Tehran in oil and gas fields.
Iran and the five permanent members of the UN Security Council – the United States, France, Britain, China and Russia – plus Germany signed a nuclear agreement, known as the Joint Comprehensive Plan of Action (JCPOA), on July 14, 2015 following two and a half years of intensive talks.