Daewoo signs MOU for building Iran refinery

SOUTH KOREAN builder Daewoo Engineering and Construction announced it has signed a memorandum of understanding (MOU) with Iranian energy company Bahman Geno to build an oil refinery in Iran.

The tentative US$10bn deal will see the companies promise to cooperate to build a 300,000 bbl/d capacity refinery in Bandar Jask, southern Iran. Fellow builder Hyundai Engineering and Construction is also seeking to join the project.

According to reports from Business Korea, Bahman Geno issued a letter of intent to Daewoo E&C and Hyundai E&C in April for engineering, procurement and construction (EPC). It also reported an additional US$1.5bn has been awarded to Daewoo E&C for road infrastructure to the plant.

The Chemical Engineer contacted Daewoo E&C for starting and completion dates for the project, but did not receive a reply.